In 1981, 8% of all individuals who filed for bankruptcy did so because they were facing the problem of medical debt. On the other hand, this figure has risen to more than 50% today. This is a drastic increase and clearly indicates the correlation between medical debt and bankruptcy. It is surprising that people are not prepared for the same.
People check out debt relief options when they apply for a credit card. They think of debt consolidation, settlement, interest holiday, postdated checks and other such solutions. When people plan for medical debts, they focus on the individual undergoing the treatment and do not even bother to think about the payment. They feel that the health insurance policy will be enough to take care of all medical payments well.
Well, 75% of all those who opt for bankruptcy because of medical reasons do so despite having health insurance. This means that the cost of healthcare is so high that mere insurance is not enough to overcome the problem. In any case, there are certain aspects and facets that insurance does not cover. Postoperative care and nursing is one such example.
So, what should one do? One cannot avoid falling ill. One should learn about medical debt settlement. One should find out how the concept works. One should make use of the World Wide Web to find out whether it is a legal option or whether it is a scam. Filing for bankruptcy, although it sounds attractive, is the worst option around.
In any case, you cannot declare bankruptcy for a specified period of time once you have opted for it once. This means that you cannot use bankruptcy to escape medical debt again and again. On the other hand, debt settlement is a much better option.
By employing a professional to intercede on your behalf, you will bring down your debt by more than half. The lenders, in this case the medical service providers, are agreeable to such a deal because the only other alternative is bankruptcy. It is an epoch event in your financial life. It is disastrous deal for the service provider as well. With nobody gaining from the deal, it is surprising how bankruptcy is even suggested as solution for medical debt.
If you play your cards right, you can overcome all your medical loan problems and you can bring your financial life back on track even as your family members recuperates from the treatment.