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Credit Score - Medical Debt and Your Credit Score by Chuck Machado

In a horrible economy, unexpected medical bills are sending families to the poorhouse. Many are accelerating that trip by using credit cards to finance their health care. This practice may further your problems.

The reason for this is that many people believe that delinquent medical bills will damage their credit report score when in fact very few medical payments are reported to the three major credit reporting agencies. According to Maxine Sweet, of Experian, these accounts only account for .07% of their data.

Why then are Americans so quick to use credit cards to pay for medical debts when the interest rates on most credit cards will surely contribute to health problems when stress takes it’s final toll?

I believe it is lack of financial education and lack of knowledge about options. Here are some other considerations you can employ when faced with unexpected and skyrocketing medical bills.

• Alot of non profit hospitals and medical centers have a budget set aside for the poor or indigent. Don’t be afraid to ask for relief through this program.

• Arrange for payment options. You won’t go into collection unless you fail to pay according to your agreement. These payment arrangements are much cheaper route than financing a debt with a credit card.

• Settle for a lump sum. remember the bill you are getting is the retail version of what hospitals charge. If they were being paid by an insurance company the bill would not be anywhere near what consumers pay. You should be able to settle for 50% if you make a lump sum payment.

• Look at the fine print and get a professional to help you if necessary. Language like lifetime cap, co-pay and cost sharing is legal and medical language you are not supposed to understand. It might be worth a coupled bucks for a professional opinion.

• Local support groups have emergency funds set aside for community members. Don’t be too prideful to ask for help. Everyone needs a helping hand now and then and receiving assistance gives you an opportunity to pay it forward.

• Disability insurance might be a good hedge against unexpected losses. Normally the cost is low, but the details will be in the fine print. Research something that seems right for you and your family.

About The Author

Chuck Machado writes extensively about credit repair and medical bills. His article, Credit Cards & Medical Bills, has helped thousands of readers understand debt related issues.If you have questions or comments, he encourages his readers to contact him through his website http://www.raise-credit-score.net

It has been very common that whenever someone wants to eliminate credit card debt the only legal option he or she could find was to file bankruptcy.

Filing a bankruptcy does not mean only to go and file up a case in court. In fact it binds the person with many legal obligations. Like, the person may lose his job or promotion. Most of the valuable assets get auctioned; you become inapplicable at various forums; such as applying for immigration or parliament.

Another drawback lying with it is that you cannot apply for any kind of financing facility for a long time as you end up with a bad credit score for at least next 7-10 years.

After effects of bankruptcy;

• Auction of all your assets

• Probably no job

• Unable to apply for further financing

Bankruptcy is not a solution actually it creates lots of other problems for you. At that moment the best option is to get legitimate debt relief services and have your loans settled instead of binding yourself into legalities lying with bankruptcy.

What you need is an intermediary that can negotiate with the creditor to settle down the overdue loan. That’s exactly why debt relief companies came into being to fight for the maximum settlement that you can get. Benefits of opting for settlement companies are

• Getting the maximum waive off on your principal amount

• Low credit score only for two years and then it starts improving in upward direction again

• You can live a debt free life

The solution to your problem is in your own hands. Either you go for bankruptcy and get a bad credit score for 7 to 10 years or you can opt for the right way through which not only you get all your debt paid off and your credit score get effected only for two years.

The wise decision would be to get yourself protected from legal obligations and pay off your loans. When you have the better option, why not to go for that? This helps you to get rid of your unsecured facilities with a negligible harm to credit scores.

The debt free peace of mind is possible by getting the right services. Debt settlement companies negotiate with your creditor to reduce debt up to highest possible limit. If you are short in your payments and your exposure is more than $10,000, you should go for a relief company to get a highest settlement deal.

There really has never been such an advantageous time to consider debt settlement. Debt settlement is a legitimate process where consumers can expect to eliminate at least 50% of their unsecured debt. Creditors are wanting to make deals in this market and are more flexible than ever when it comes to debt reduction. To find legitimate debt settlement companies in your state try the following link:

Debt Reduction Help

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