High medical bills often lead people into debt, with many resorting to using credit cards to cover these expenses. However, this approach can result in further financial burden over time. In the event of unexpected illnesses or emergencies, having savings readily available is advisable to avoid relying on credit cards. If you lack sufficient funds, it’s essential to establish a savings strategy promptly.

 

If you’re aiming to settle your medical debt without increasing your credit card debts, and you lack adequate savings to cover the expenses, medical debt consolidation could be a viable option to explore.

 

Here are a few approaches you could use to find relief from your medical debts:

 

Utilize Your Home Equity Line of Credit (HELOC)

If you’re a homeowner with around 15-20% equity in your property, you might qualify for a home equity line of credit (HELOC). This type of loan allows you to borrow against the value of your home, potentially enabling you to settle a significant portion of your debts in one go. With a HELOC, you’re only obligated to repay the amount you withdraw, not the entire loan. Typically, repayment starts with interest-only payments, followed by clearing the principal balance later. HELOC terms can vary, ranging from 20 to 30 years, depending on your lender and borrowing amount.

 

Disadvantages: HELOCs generally feature fluctuating interest rates, indicating that the interest on the remaining balance will increase in line with federal funds. Additionally, there’s a possibility of being mandated to make a balloon payment, potentially exceeding twice the average monthly payment of the loan. Another factor to contemplate with this loan is that falling behind on payments could result in the risk of losing your home through foreclosure.

 

Seek out a negotiator specializing in medical debt.

If you’re overwhelmed by medical expenses and unable to settle them, collaborating with a medical debt negotiator could be beneficial. They can negotiate with your healthcare provider on your behalf to lower the amount of your debt.

 

Before deciding to pursue this option, do your homework. Make sure you understand the fees charged by the medical debt negotiator you choose to work with. While this route may be suitable for families who don’t qualify for government assistance or debt forgiveness, keep in mind that without collateral (like your home), you could face higher interest rates if you miss payments.

 

Get in touch with credit counseling services.

Considering a credit counseling service could be beneficial if you’re struggling to find solutions for medical debt independently. With this service, a credit counselor will assess your financial situation, including your income and debts, and collaborate with your healthcare providers to resolve your debt. Additionally, they provide budget counseling and offer classes on money management.

 

Seek assistance in resolving your debt.

National Debt Relief offers assistance in resolving your debts, alleviating concerns about medical bills. We negotiate on your behalf to reduce or settle your debt for less than the total owed, often in a shorter time frame. With our experienced debt coaches, who have collaborated with 10,000 creditors, we strive to maximize savings, allowing you to focus on activities that bring you joy.