Tips to Avoid Medical Debt


Debt is a serious issue for many people who often take loans from credit card or expense of medical emergency. As the medical expense rise and the insurance coverage falls very low, it forces people to take more credit card debt or spend emergency savings.

You can avoid making a medical emergency a financial one by collecting the right amount of information and getting rid of the extra expenses cleverly.

Reason for medical debt

When someone close to you are advised with an urgent surgery,  you find no time to think about the cost involved in the operation as you are already having a hard time with the decision of undergoing a surgery. But you do not get out of the woods once you leave the hospital, the expense and bills are waiting to trouble you. Lab tests, hospital room charges and prescription charges sum up and make one troublesome amount. Medical emergency does not knock your front door to come in so you should always be prepared in advance if that shall happen.

Medical emergency debt via credit card

Hospital administration encourages people to make payment via credit card, because in turn they settle their payment instantly leaving the customer and the credit card company to deal with the financial situation of the customer that is the reason why so many credit card companies provide discounts for using the credit card at hospital and other stores.

Credit card debt is more troublesome than hospital expenses so one should always be carefully while converting your medical debt into credit card debt because failure of payment can lead to overdue charges and penalties. Unable to pay the consumer debt can lead to inability to find jobs mortgage house or future loan approval chances lower. You can also opt for credit card consolidation loan to get a better hand over your debt. Check out for credit card consolidation loan reviews to go in the best possible manner.

Equity debt

While facing the pile up of debts and collection companies at your doorstep, sometime it becomes necessary to lookout for home equity loan. This way you can pay all your medical expense but at a much higher rate of interest and monthly payment. But home equity loan should be considered as the last resort because if you are unable to pay your current debt you may lose your home, but for smaller loan amount it can be considered as secured debt whereas medical is an unsecured debt.

Medical Plans and Important Coverage

It is always wise to lookout for health insurance companies because it keeps you safe from falling into an incomprehensible debt situation by medical expenses. Survey showed that people with the medical insurance cover face less trouble than people without it.

Health insurance companies hire more employees the coverage growth has increased exponentially. Incurred plans gives less coverage than it used to, while having premium and deductibles rise. Government introduced a way to less the burden on shoulders of people with medical debt expense by allowing a health savings account as a solution for the problem; it enables people to save their money for future use without service tax involved.

However it has not solved the problem completely because to get open such an account there is a requirement of having high deductible health plan which in turns increases risk of having higher medical bills and people unable to pay debt.