We all know how bad it will be for our financial standing if our credit score is ugly. Therefore, if you have incurred a medical bill debt in the past, you must pay it off properly or else the next time you apply for a loan, you’ll have a hard time getting approval…that is, if you still get approved.
On the same breath, we also know how bad a time it will be for you to have someone dear to you admitted in the hospital and you’re already buried in debt due to the medical bills piling up. That is why, in this article, we will show you how to get ready for such hard times. Here are a few time-tested tips:
The first thing that you need to straighten up is your attitude towards your medical bill debt. The moment that you get your medical bill statement, you know that you must pay it off as soon as possible. Think like this: you are about to save a life. Be very motivated to find easy, fast and legal ways to pay it off. Keep this motivation strong and make it reflect in the way that you handle money. If you are admittedly having a hard time catching up, cut back, save every cent you find and most of all, keep your eyes open for many earning opportunities.
Next, round up all the assets you have starting with cash. If you have savings (good for you!), add that amount up to your cash-on-hand. That’s the total cash that you have. See how that would fare against the medical bills. If it’s not enough, you can pick between loaning or pawning, which one you’d want to come first. Here, you’d need to round up all the other assets aside from cash, to turn them into cash.
If you pawn off, you can get the money fast. Less hassle-that’s the ultimate advantage. If you opt to loan, however, you might have to sign more papers and the approval may take a few days. Many medical loans have lower interests than pawnshops, and if you have a car or real estate property as collateral, then you don’t have to turn the actual item in, you only need to give a certificate of ownership. Whichever option sounds good for you, go for it. You may also try to loan from your friends or relatives without having to turn in a collateral, or have other gadgets or jewelry serve as such. Really, it depends on how much you need and how much time you actually have.
Pay off your medical bills as soon as you have the money. It doesn’t matter if you just scored a small fraction of the bills at the beginning. The most important thing is that your debt is moving. And it’s shrinking. Interest can be really suffocating and you wouldn’t want that extra baggage.
Lastly, always have back-up plans. What if you end up taking a payless leave from work? (By then, your regular income won’t come anymore.)What if you don’t have anything else to pawn off or give as collateral? What if the bills suddenly balloon because there’s a new complication discovered? Don’t leave yourself empty handed and try your very best to not be ashamed to ask for help. Hospitals can be forgiving about your medical bill debt but the other institutions might not be.