Medical debt is a serious issue these days. It’s argued about by political candidates and a regular topic in the news:

Almost a third of working Americans currently have some kind of medical debt and about 28% of those who have an outstanding balance owe $10,000 or more on their bills.

When asked if they’ve ever not paid those bills, about 54% of people with medical debt said they had, according to a new survey fielded by Salary Finance of over 2,700 U.S. adults working at companies that have more than 500 employees. And that’s among people who are employed and typically have health insurance...

That’s over half of working Americans drowning in debt. These are the people we didn’t use to think had to worry about health care or medical debt relief. If you’re reading this right now, there’s a chance this includes you.

The Bewildering Cost of Health Care

Let’s be real for a moment. There are systemic issues with health care in this country and how it’s paid for. We should all be educating ourselves and demanding better of our political leaders and our corporate powers-that-be. When it’s time, you’ll no doubt vote your conscience on this and any number of other issues – as you absolutely should.

In the meantime, however, you may be wrestling with personal debt, some or all of it from medical expenses. Even those of us with health insurance are finding it harder and harder to figure out what common procedures or treatments will cost us, what our insurance will or won’t cover, or what we could do about it even if we knew. Sometimes you think you’ve got it figured out, then months later a new bill arrives with something about your anesthesiologist being out-of-network and suddenly you're broke again!

Unlike many other forms of debt, it feels like we have little control over how much it costs to see our doctor, pick up our prescriptions, or take care of ourselves the way our physicians insist we must. That’s largely true. We can’t control most health care expenses, and it’s not like it’s usually a good idea to simply go WITHOUT that colonoscopy or insulin or CAT scan.

We can, however, influence a few things along the way – and when you’re talking about medical debt relief, every little bit helps.

Controlling the Cost of Health Care (A Little)

Let’s start with things we probably know we can and should do, but may feel awkward about for some reason.

Make Sure Your Treatment Is Covered by Your Insurance

If you have insurance, use your insuring company’s website to find doctors “in network” in your area. If you’re uncertain, ask the doctor’s office you wish to use whether or not they take your insurance. Even discussing payment arrangements upfront can help prevent future confusion or stress. The best method of medical debt relief is not needing it in the first place.

Whether you have coverage or not, never be afraid to ask your doctor about costs. While you don’t want to compromise your care, there are sometimes alternatives or options available once your physician realizes that money is an issue. Sometimes it’s as simple as sending you home with free “samples” of a necessary medication instead of a written prescription. Other times they may suggest running different tests to determine whether or not the more expensive procedures are truly warranted. If you have insurance, make sure to ask the office staff about keeping any referrals to specialists “in network.”

Look for Medical Coupons

You’ve probably seen those commercials for medication coupons you can take to the pharmacy or pull up on your phone to reduce the cost of your prescriptions. I do NOT recommend PAYING for any sort of “magical prescription card,” but I’ve had amazing success with GoodRx and I’m told there are others out there that are equally effective. These websites cost you NOTHING and can save you hundreds of dollars.

Normally, I’m a fan of making sure I understand the “how” and “why” of such things, but honestly, the logic of the prescription drug industry makes my brain hurt. What I do know is that printing out or pulling up on your phone a few free bar codes from the magical drug website makes many prescriptions way more affordable. I’ve chosen to simply accept this as a pleasant mystery, much like why magnets work or those optical illusions that make their way around social media every few months.

Paying Those Medical Bills

No matter how big or small your medical bills, you want to do everything you can to take care of them. Obviously, that’s easier said than done. You may find yourself quickly overwhelmed. Personal debt is discouraging. It can be intimidating, or even frightening. It’s tempting to begin tossing those bills without even opening them and to stop answering the phone, but that’s not usually the best approach when you need medical debt relief. Let’s start with some less extreme measures and build from there.

Negotiate Your Bills

First and foremost, call the number on the bill. There’s ALWAYS an 800 number or other way to contact the company who sent the bill. Most of the time, you can get a real live person on the phone. Let them know you’re calling about a bill you received. Be prepared to read them the account number on the bill, tell them your date of birth, and possibly specify the date of service (which should also be on the bill).

If you don’t have insurance, make sure they know this. Some medical companies have very different policies for customers with insurance and those on the “pay as you go” plan. You may even be able to negotiate a much lower bill if you’re able to pay them something that day.

With or without insurance, if you’re not able to pay the amount in full right away, be honest about this. You don’t need to go into your life story with them, and while genuine emotion is what it is, getting angry or breaking down into tears won’t help your cause. Medical debt relief is about honest solutions and tough choices, not guilt or shame or threats or whatnot.

Most providers will ask if you can make a partial payment before the due date. Many will offer payment plans without interest or penalties, but that’s not necessarily safe to assume in every situation. If you can pay a token amount each month reliably, work it out and make it happen. If you can’t, you’re at least letting them know that you’re not trying to avoid paying; you simply don’t have the money. If nothing else, you’re hoping they’ll hold off on reporting you to the credit bureaus as long as you’re at least staying in communication with them – and while that may seem like a secondary issue, it’s still worth thinking about.

Keeping Your Credit Scores Healthy

I realize that when we feel like we’re drowning in debt, concern for our credit history or three-digit credit score five or ten years from now isn’t exactly our top priority. We’re trying to survive TODAY – to get through THIS crisis so we can move on to another. I understand this better than you might think, believe me.

Keep in mind, however, that defaulting on medical debt is a killer for your credit score. It makes all future borrowing more difficult. In other words, not paying your medical bills right now means the next car you buy will literally be more expensive for you because you won’t be able to secure the same sort of terms or interest rates you would with better credit.

It means settling for a smaller home in ten years or a different neighborhood because you can’t get approved for the same mortgage as you could with a higher score. Maybe that’s not fair, and maybe it sucks to think about, but honestly is key to trust, and I’m trying to be real with you.

Talk to Creditors and Be Honest

If you can’t pay them, you can’t pay them. But if you CAN pay them with some sacrifices and creativity and focus, it’s probably worth it. Either way, don’t avoid the issue – talk to them. Stay in touch. Call them before they call you, and answer if they do call. You may not have the money, and they may still turn you over to collections eventually and report you to the credit bureaus, but you’re not making things worse when you do your best to keep things real. Sometimes you can make them better.

What Can You Do When You’re Drowning in Debt?

One option for major medical debt relief is a debt consolidation loan.

Personal Loan to Consolidate Debt

The idea is to take a personal loan large enough to pay off your outstanding personal debt and replace those many monthly bills with one single installment due each month. Typically this means a much lower monthly payment than the combined minimums of multiple debts, as well as the reduction or elimination of late fees, interest rates, and other factors making it feel like you’re never ever going to be free again.

It’s important to recognize the meaning of “relief” in this context. Yes, it’s a major relief because the right personal loan for medical debt relief can help you rise out of “panicking, crashing, and burning” mode and into “responsible adulting” mode. It can make your debt more manageable and lower its hard costs over time.

It does NOT mean your debt goes away. It’s tamed, not sent off to the same mythical old farm as your childhood pet, Rusty, when he got old. You’re still making the payments – they’re just doable now. That’s no small thing, but it’s TAKING responsibility, not avoiding it.

Personal loans for medical debt relief should be part of a larger personal debt management plan. Be honest with yourself about the root causes of the problem – the parts you could have done differently, as well as those largely or completely out of your control. Check your credit score. Get serious about a household budget (if you haven’t already). Compare several different consolidation options. Pay attention to costs and fees – especially if they’re in small print at the bottom of something. We can help you to find potential lenders. Enter the relevant information and follow the steps:

Avoid Further Debt

Above all else – and this cannot be stressed enough – don’t continue building up debt to replace the mess you’ve just paid off with that consolidation loan. Medical debt relief is not intended to make it easier to go FURTHER into debt. That is, in fact, the opposite of what we’re shooting for.

Look, you know we’re Goalry mall. You know at the end of this article I’m going to offer to connect you to a lender we think will make a good match for your wants and circumstances. That’s a big part of what we do here, and we’re proud of our track record and the feedback we receive. But we also know a thing or two about debt and consolidation loans around here, and we’re happy to share what we’ve learned over the years so that you can make the most of any opportunity you may be offered, should you choose to request it.

Does A Medical Debt Relief Loan Hurt My Credit?

No. Quite the opposite, in fact. Whenever you’re able to pay off personal debts – medical or otherwise – your credit is either helped or unaffected. As you begin making payments on your debt consolidation loan, you’re building (or repairing) your credit history moving forward. Because these new payments are lower and easier to keep track of, you should be able to quickly establish a solid track record of timely payments – and that’s how strong credit scores are built.

Paying off your medical debt, then, doesn’t just eliminate one problem (although it can be a pretty big problem and we’re glad it’s dealt with!). It helps lay a foundation for more opportunities and better terms in the future.

If after you’ve considered all of your options and digested the relevant information, you decide NOT to pursue medical debt relief through a consolidation loan of some sort, we’re honestly OK with that as well. Debt consolidation can be a powerful tool for taking more effective control of your personal finances and your life, but unless it’s handled strategically, you could possibly find yourself in worse financial shape than before.

Of course, we want to help you connect to the right lender for you if that’s what you decide. But we also want to help you make the most of it by understanding the process along the way, setting clear and useful goals, and avoiding common mistakes others have made when trying to pay off their debt. We figure in the long run, that’s a better business strategy than insisting everyone should do X, Y, or Z right now because... MAGIC!

How Do I Stay Out Of Debt?

It’s not always necessary, or even desirable, to avoid debt altogether. There are good sorts of debt, acceptable types of debt, and – no surprise here – all kinds of unpleasant forms of debt. Before worrying about staying OUT of debt, it may prove useful to start by trying to understand debt better. What are the different types of debt? How do I know when debt is good, acceptable, or bad? What’s worth going into debt over and what isn’t? And what do I do once I’m IN debt?

It’s not always easy to do all the right things, but they’re not hard to understand. You just have to start, then keep going, a little at a time. Kind of like the way we end up in debt to begin with. Very much like the way we get out of it.

And you can, by the way. Get out of debt, I mean. It’s doable. Whether it’s medical debt relief you need or some other combination of personal debt, the situation is NOT as hopeless as it may sometimes feel. I promise. I’m not saying it will always be easy; anyone who does is a very bad person who probably eats weird cheese and smells funny. But it doesn’t have to be as hard as it sometimes seems, and it’s definitely not as hard as STAYING in debt indefinitely.

Plus, you don’t have to figure it out alone.

Conclusion

As you begin to reclaim control of your financial life (which usually means taking more effective control of the rest of your life as well), we’ll help you explore ways to make better use of your budget. We’ll talk about investment options for people who don’t think they’re the “investment type,” whatever that means. We’ll make it easier to stay focused not just on getting out of debt, but staying out of debt once you’re there.

Which you will be, by the way. I know I just said that a moment ago, but I can’t shake the feeling that some of us need to hear it (or read it, I suppose) again.

You. Can. Do. This.