Medical debts are one of the easiest and high balance debts to accumulate today. As health insurance coverage becomes unaffordable and services are backed by high prices, many people end up in bankruptcy over medical bills. However, there is another way to resolve medical debt trouble that could be just as effective as filing for bankruptcy.
It is estimated that one in five Americans carry some level of medical debt that puts pressure on their monthly finances. 30% of those with medical debt can’t afford to make even the minimum payments. What most people don’t know is that medical debt is one of the easiest debts to resolve directly with the creditor. Why? Mostly because the medical provider has little legal recourse in collection efforts and is, therefore, willing to negotiate payment terms.
The first thing to know about negotiating medical debts is that your assets are safe from seizure or liquidation. Medical providers do have the right to report your delinquent account to the credit bureaus, but they cannot legally take your property to satisfy debts and rarely are granted court orders to garnish wages.
That being said, your best chances at debt negotiations with medical providers is to contact them at the first sign of financial trouble. Don’t wait to miss a payment before attempting to negotiate, but contact them right away to explain your situation.
Offer the provider an amount you can afford to pay and even offer to set up payment through an automatic payment draft. They are often more willing to negotiate payment terms when they know they can get a guaranteed payment each month, even if that amount is smaller than desired.