• June 21, 2022

Medical Bankruptcy: Using a Credit Card to Pay Medical Bills Is a Bad Move – Use Settlement Instead

In 1981, 8% of all people who filed for bankruptcy did so because they were dealing with 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 look at debt relief options when applying for a credit card. They think of debt consolidation, settlement, interest holidays, postdated checks, and other such solutions. When people plan for medical debt, 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 enough to take care of all the medical payments well.

Well, 75% of all those who file for medical bankruptcy do so despite having health insurance. This means that the cost of medical care is so high that maternity insurance is not enough to overcome the problem. In any case, there are certain aspects and facets that insurance does not cover. Postoperative care and nursing is an example of this.

So what is one to do? One cannot avoid falling ill. One must learn about medical debt settlement. One must find out how the concept works. One must make use of the World Wide Web to find out if it is a legal option or if it is a scam. Filing for bankruptcy, as appealing as it may sound, is the worst option out there.

In any case, you will not be able to declare bankruptcy for a certain period once you have opted for it 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 such a deal because the only other alternative is bankruptcy. It is an epochal event in your financial life. It’s a disastrous deal for the service provider too. Since no one wins from the deal, it is surprising how bankruptcy is suggested as a solution for medical debt.

If you play your cards right, you can overcome all of your medical loan problems and can get your financial life back on track even as your family members recover from treatment.

Leave a Reply

Your email address will not be published. Required fields are marked *