Medical is a big problem for many individuals and there are many ways to handle the situation. One popular way of dealing with medical debt is medical debt consolidation. Before making the choice to consolidate medical debt though, see if can cut back on savings and/or spending because consolidation has it drawbacks. There are two types of consolidation.
Consolidation Through Loans
The first type of medical debt consolidation is done by obtaining a loan from a bank or financial institution. This loan can be unsecured or secured. An unsecured loan again, is a loan where a bank or financial institution loans you money based on your credit score with no collateral involved (collateral would be you have a house, boat, or car). If you can obtain a secured loan (you have collateral) it is a better route to pursue because usually a secured loan has a lower interest rate then an unsecured loan. In either case, if you get the loan, your next steps would be to pay off your medical bills to get your accounts in good standing. This type of consolidation is only advisable if you need to lower your monthly payments because of an inability to pay them. Although consolidation usually lowers your monthly payments it also increases the length of the repayment period which results in you paying more interest in the long run. Moreover, this type of consolidation is usually more difficult to obtain. If you are interested in pursuing this option fill out the debt consolidation form by clicking here. The form is free, confidential, and there is no obligation on your part.
Consolidation Through The Use of Debt Management Company
The second type of medical debt consolidation is done through the use of a debt management company. These companies are experts in negotiating with creditors (hospitals, 3rd party billing agencies, collection agencies etc) to either help you get a more reasonable payment plan and even sometimes negotiate your total medical debt to a lower balance amount. To pursue this option, fill out the form at the top by clicking here. The form is free, confidential, and there is no obligation on your part. The drawback to this option is that sometimes your credit can be impacted negatively if your medical debts are reported to the credit bureaus as being settled instead of being paid in full. However, this option can work if make sure then when you talk to different debt management companies that they will ensure your debts are reported to the credit bureaus as paid in full. This option is usually easier to obtain.
In either case, consolidation is beneficial if it prevents you from missing payments and degrading your credit score. In the end, you want to make sure you can live comfortably but you don't want to ruin your credit score.