Having medical debt is an event no one would want to deal with, but can sometimes be inevitable. People never know when they could fall into a $500 emergency bill or when they would need to spend more than a week’s worth in the hospital. A survey result showed that 7% of adults who were struggling with their medical bills in the past two years have declared bankruptcy.
Many people in Utah apply for car title loans or personal loans to pay for their medical debt, but some ends up with more to pay. Here are a few tips on how you can manage this kind of debt before it’s forwarded to higher authorities:
1. Don’t neglect your bills. Those numbers won’t go away by simply closing your eyes. Pay what you can or make payment arrangements to slowly pay it off. You don’t want your unpaid medical bill to reflect on your credit report and hurt your chances of taking out other loans in the future.
2. Know the difference between an Explanation of Benefits (EOB) and an actual bill. Review and understand the paperwork your health insurance sends you as soon as you receive it. An EOB shows you what your insurance has already covered and what your out-of-pocket would be, which should be coming in another bill from your doctor’s office.
3. Check if you’re qualified for Medicaid. This is insurance aid for residents with low income. The criteria to qualify vary in each state, and it’s best that you call your state’s Medicaid office to find out. This insurance only pays within a certain period so make sure you apply as soon as possible.
Know all your options to pay off your debt to make sure you don’t go deeper into a loan you can’t repay. Knowing how to manage your finances is key and you can always seek advice from legal professionals.