Are your medical bills and reminders piling up on your desk? You might be tempted to throw them all away, but it won’t be the best solution. You can’t pretend that your debt doesn’t exist, even if you think you can’t afford to pay it.
About 61 percent of consumers with medical debt said they felt stressed, while 49 percent lost sleep over medical bills and 23 percent were unwilling to pay off existing medical debt. Don’t give up trying to pay off that debt. Here’s what happens when you don’t pay medical bills.
What happens if you don’t pay medical bills?
You will feel stressed
Always one, of course $200 Payday Loans No Credit Check can be a suitable solution to cover your medical bills without a tough loan request. But if you already have a mountain of medical debt that you can’t handle, you may be afraid of calls and collection agencies.
Some collection agencies have aggressive tactics to return the money unless you write letters asking them to stop this behavior or find an attorney to protect you. You can offer a reasonable monthly payment and negotiate this arrangement with the doctor’s office or hospital.
Also applying for payday loans for this purpose adds additional stress. According to research on Payday loans in AmericaMost borrowers use payday loans to fund ordinary living expenses over the months, while the average borrower is in debt about five months a year.
The study shows that 69 percent of consumers who took out a payday loan for the first time used it to cover utilities, rent or credit card bills, while 16 percent used it to help with medical bills or car repairs.
The bills can go in collections
You must act immediately when the hospital billing department threatens to send your bills for collection. Medical bills on your credit report will seriously damage your credit score. You may need to work with the doctor’s office or hospital billing department if you want to avoid having your bill sent to the collection agency.
Your creditworthiness may suffer
The healthcare provider may not submit your account for collection. However, this does not mean that the result will be positive. The hospital may report missed or late payments to credit bureaus such as Equifax, Experian, or TransUnion.
Do Medical Bills Affect Your Credit Score? Yes, once this information appears on your credit report, it will be included in the Payment History category. This category accounts for 35 percent of your credit score, so your score can drop significantly.
You might find a suitable solution
You should do your best to think about a settlement, payment schedule, or some sort of agreement between you and the doctor’s office. The sooner you work out a suitable solution, the more chance you have of avoiding debt collection visits or a reduction in your credit rating.
You can get a credit card with an introductory 0 percent APR for a long time. This option also depends on your credit rating, ability to pay off the debt on time, and other factors.
It is possible to buy additional time
Did you know that credit bureaus should wait 180 days before listing past due debt on your credit report? They count 180 days after receiving information about your unpaid medical debt. In other words, you still have a six-month grace period to try to negotiate and resolve that debt. Otherwise, it will show up on your credit report and hurt your rating.
Is a Medical Loan Right for You?
Many people opt for a payday loan or medical loan to fund their bills. It is important that you define whether applying for a medical loan can be an advantageous decision in your situation. It is useful when:
You can afford monthly payments
Many loans can be repaid in monthly installments or installments. If you calculate the total amount of the loan and it fits comfortably within your budget, you can withdraw that money. Make sure you understand the terms of the loan and the APR and get a reasonable interest rate.
You consolidate your medical debt
Some consumers have high-interest medical bills that they want to consolidate. This decision will help you earn a lower interest rate, manage your monthly loan payments, and pay off debt faster.
Do not take out a medical loan if:
They qualify for special programs and scholarships
Consumers who qualify for support from government programs, grants, and charities may not need to apply for a medical loan. Look for alternative solutions or ask your hospital about a hardship plan before deciding on a loan.
Borrowers with poor and fair credit (FICO score below 689) may receive a high APR from the lender. As a result, you will have to pay more interest and you may not be able to afford the full amount of the loan. If you calculate the total amount and find it too expensive with the annual percentage rate over 36 percent, it is better to look at other options.
To sum up
You cannot neglect your medical debt. When you have a stack of medical bills, you need to find a convenient way to get rid of them. Arranging a hardship plan with your doctor’s office or taking out a medical loan can help you avoid stress related to the unpleasant consequences of non-payment.
If you don’t pay your medical bills on time, your debt can go into debt collection while your credit score can suffer severely. If you want to get good credit and protect your credit, follow our tips and think about the most suitable solution tailored to your current financial situation.