In 1981, 8% of all people who filed for bankruptcy did so because they faced the problem of medical debt. On the other hand, this figure has risen to more than 50% today. This is a drastic increase and clearly indicates the correlation between medical debt and bankruptcy. It is surprising that people are not prepared for the same.
People review debt relief options when applying for a credit card. They think of debt consolidation, settlement, interest vacations, post-dated checks, and other similar solutions. When people plan for their medical debts, they focus on the person undergoing treatment and don’t even bother to think about payment. They feel that the health insurance policy will be sufficient to cover all medical payments well.
Well, 75% of all those who opt for bankruptcy for medical reasons do so despite having health insurance. This means that the cost of medical care is so high that mere insurance is not enough to overcome the problem. In any case, there are certain aspects and facets that the insurance does not cover. Postoperative care and nursing are an example of this.
So what should one do? You can’t help getting sick. One must learn about medical debt settlement. One should find out how the concept works. One should make use of the World Wide Web to find out if it is a legal option or a scam. Filing for bankruptcy, although it sounds attractive, is the worst option there is.
In any case, you cannot file for bankruptcy for a specified period of time once you have opted once. This means that you cannot use bankruptcy to escape medical debt over and over again. On the other hand, debt settlement is a much better option.
By hiring a professional to advocate on your behalf, you will reduce your debt by more than half. Lenders, in this case medical providers, agree to that deal because the only other alternative is bankruptcy. It is a historic event in your financial life. It is also a disastrous deal for the service provider. With no one benefiting from the deal, it’s amazing how even bankruptcy is suggested as a solution for medical debt.
By playing your cards right, you can overcome all your medical loan woes and can get your financial life back on track even as your family members recover from treatment.