The current common problems that arise out of medical debt include: medical debt collectors. Failure to settle medical debts. Higher interest rates. Bad repayment terms on medical bills.
Many consumers take on more hospital or medical debt forgiveness through bankruptcy. Although filing for bankruptcy protects you from any further financial difficulties, it destroys your personal and professional reputation. Furthermore, filing for bankruptcy is expensive and may not always bring an immediate financial relief. As an alternative, there are many organizations that can provide more affordable solutions for a person or family. These companies can provide non-profit financial assistance through the most popular medical debt forgiveness programs. The Medical Debt Forgiveness Programs has different requirements, but usually all eligible patients can benefit from the same or similar programs.
One option is to consolidate one’s debt through a hospital consolidation loan. These loans are offered by several financial institutions and credit unions, and can be offered at relatively low interest rates with manageable payments. In most cases, a lump sum repayment is made in exchange for one monthly payment. To be approved for a medical debt forgiveness loan, the applicant needs to prove stable financial circumstances. These are usually the better options in terms of health and hospital bills, but other financial obligations may also apply. Health insurance may also qualify for some medical debt forgiveness programs.
Another program available is through a hospitalist program. This program works similarly to a debt consolidation service, where funds are channeled to cover medical bills. However, instead of making one monthly payment, all payments are made directly to the hospital. The hospitalist serves as the mediator between the debtor and creditors, and manages the medical debt forgiveness process.
A third option that has recently begun to become available to Americans is the credit counseling process. Counseling agencies provide detailed financial information to help Americans better understand their finances. Debtors then take this information and apply to their credit card companies for credit scores that reflect their financial problems. When creditors evaluate their applicants, they consider past credit history, income level, and the amount of debt owed, and set their own monthly payment amount. Medical debt forgiveness services allow Americans to improve their credit scores, which allows them to qualify for lower interest and longer terms on their debts.
One limitation of medical debt forgiveness plans is the use of federal funds. Although most hospitals accept these payment plans, some do not, and will instead bill the patient directly for medical debt. Some may also reject outright any request for a waiver on the bills. This means that an applicant may be forced to apply for a waiver from their own pocket.
Americans struggling to pay medical bills often have few options. The first, and most obvious, is to file bankruptcy, which negatively affects credit ratings for years to come. Another option is to ask their hospital bills for a discount, but hospitals rarely offer discounts. Finally, there are sometimes wage garnishments which can be applied to outstanding medical bills to bring down the balance. These methods often mean additional payments to the hospital biller, adding further financial strain to struggling Americans.
For those Americans who cannot afford to pay for their medical bills, medical debt forgiveness programs offer hope. These programs allow those who can pay up to 60% of their bills to escape serious financial hardship. For many Americans struggling to make ends meet, this option offers a way out of the downward economic spiral. For some people this means the end of bankruptcy, wage garnishments, and lengthy hospital stays.