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Medical Debt Resources
Get Yourself Back On Track
Medical Debt Consolidation:
Consolidate Medical Debt and Lower Your Monthly Payments

     Medical debt consolidation is an increasingly common option for people who are struggling under the weight of numerous monthly payments.  A person who decides to consolidate medical debt can combine a variety of accounts into one, requiring only one monthly payment.  While some forms of medical debt consolidation deal only with medical debt, others may combine several unrelated accounts.  While there are certainly better alternatives when dealing with medical debt, consolidation is an excellent option for certain situations.  If a family cannot quality for charity assistance or Medicaid, a plan to consolidate medical debt may be the only way to stay afloat.  For those families, there are a number of methods to consolidate medical debt.  Not all are equally attractive, and it is important to consider all aspects of the situation before committing to a plan for repayment.

If you are looking for information on Debt Consolidation without a loan. Visit a reliable Debt Settlement and Consolidation Company.

     Before you decide to consolidate medical debt, consider whether it is the right move for you and your family.  If monthly payments are high, but manageable, it may be worthwhile to cut back on spending or seek out a small source of additional income.  Under most medical debt consolidation plans, monthly payments decrease while the repayment period increases.  Even if the interest rate decreases, you may pay more interest over time if you decide to consolidate medical debt.  If you expect your income to increase in the near future, you might want to hold off on medical debt consolidation and simply pay what you can until you are able to pay more.  If you feel that lower monthly payments will lead you to make poor decisions with the leftover money, this is another good reason to avoid medical debt consolidation.  If, on the other hard, you are committed to putting extra money towards your outstanding debts, it may be wise to consolidate medical debt to give you a little breathing room.  Overall, the decision is an intensely personal one, and only you can know how you will choose to save and spend your money.   

     There are two basic types of medical debt consolidation plans.  The first and preferable way to consolidate medical debt is with a traditional unsecured loan.  When you consolidate medical debt in this manner, a bank or other lending institution evaluates your credit to determine if you are eligible to receive a loan for the total amount of your medical bills.  The proceeds of this medical debt consolidation loan are then sent off to each health care provider, and your accounts are returned to good standing.  This alternative works best for families with relatively low medical debts and good credit standing.  This is because it is very difficult to obtain large unsecured loans.  If you have collateral, you may be able to secure a medical debt consolidation loan, but it is not advisable in most cases because of the precarious financial situation it could leave you in if you miss a few payments.  Some professionals advise their clients to consolidate medical debt with unsecured loans because it minimizes the impact on the client’s credit score in the event that payments cannot be made.  Instead of being reported by several health care providers, the only blemish would be that of one lending institution. 

     The more common method of medical debt consolidation is to use a type of debt management program.  If you consolidate medical debt in this manner, an agency will contact each of your health care providers to arrange a lower total or better payment plan.    Depending on the agency you use, this form of medical debt consolidation may have an adverse effect on your credit score.  Sometimes, debts will be reported to credit bureaus as settled, rather than “paid in full”.  If you decide to consolidate medical debts in this way, try to find a reputable agency that will do everything in its power to make sure your debts are recorded as paid in full.  Because this type of medical debt consolidation doesn’t actually involve obtaining a loan, it is the easiest way to consolidate medical debt.  If you can qualify for an actual consolidation loan, that is nearly always preferable to this approach. 

     Once a person understands the way that medical debt consolidation programs work, it’s common to wonder why an agency is necessary.  There are a number of reasons that it helps to seek out an agency before you consolidate medical debt.  For many, the process of taking constant phone calls from billing departments is both stressful and time-consuming.  By seeking out a medical debt consolidation agency, these calls will be directed instead to the agency.  For others, the act of communication is difficult.  If your written and verbal communication skills are lacking, or if you get very emotional when discussing your debts, it helps to have someone else doing the talking.  For those with the time and ability to deal with debtors, there are still compelling reasons to seek out assistance when it is time to consolidate medical debt.  Hospital billing departments know when they are dealing with professionals, and they know that it is much more difficult to bully a professional than a scared or stressed out individual.  By obtaining professional medical debt consolidation assistance, you may actually end up settling for a lower amount that you otherwise would have. 

���� Medical debt consolidation can be a stressful and confusing process, but it doesn’t have to be.  By giving adequate thought and consideration to your own unique scenario, you can easily determine the optimal way to pay down or consolidate medical debt. By making the decision to consolidate medical debt, you can ensure that one bad experience doesn’t jeopardize the long-term financial well-being of your family.  With the rising costs of medical care, medical debt consolidation can also be an important tool in making progress on current debt so you can prepare for future medical expenses.  While medical debt consolidation certainly isn’t the right decision for everyone, studies have shown that most people who make the decision to consolidate medical debt are pleased with their choice.

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Pay a little more than the minimum payment required each month and you'll be surprised at how fast that credit card balance decreases.

Call the credit card companies and cancel all of your credit cards except for the one that gives you the lowest interest rate. Don't use that credit card unless absolutely necessary.

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