How to Pay Off Medical Bills Without Going Broke

It's not always easy paying off medical bills---especially if you have a limited amount of money. However, there are a few ways to take care of your unpaid medical bills and still have money to pay for your personal living expenses. With some planning and budgeting, you can definitely pay off your medical bills without going broke.

Difficulty: Moderate

Instructions

Things You'll Need:

• Budget
• Itemized bill
• Appropriate payment plan
• Personal loan or credit card

1. Determine how much money you can pay toward your medical bills. First, make a list of your current monthly living expenses and financial obligations, such as rent/mortgage payment, car note, utilities, groceries and transportation costs, and write down how much money you spend on these items every month. Next, subtract the total amount of your living expenses from your monthly net income (take-home pay) to figure out how much extra money you have available to pay toward your medical bills.

2. Verify the total amount of your medical bills. Contact the hospital or doctor's office to speak with someone in the billing department about your current unpaid balance. You will need to find out the exact amount that you owe, so be sure to ask someone in the billing department to send you an itemized bill describing the services that were rendered to you.

3. Negotiate a payment plan. Quite often, hospitals and other medical facilities will allow you to establish a payment plan to pay off your bills. Make sure that you accept a payment plan that suits your personal budget and needs. It is important that you do not neglect your other bills and obligations, so be honest and choose a payment plan that works for you.

4. Utilize other resources to pay off your medical bills. Depending on your financial situation, you may need a little extra assistance with paying off your medical bills. If this is the case, consider applying for a personal loan or line of credit with a local financial institution. You may also choose to pay off your medical bills with a credit card. Be sure to inquire about the fees and interest rates involved with these types of products before you actually apply for them. Fortunately, if you use a loan or credit card to pay off your medical bills, you won't have to spend all of your own personal money and can avoid going broke.

5. Submit your monthly payments in a timely manner. The billing department at the medical facility will let you know how to make your payments. You may have a choice to either make your payments in person, over the telephone, online or thorough postal mail. It is very important to pay your medical bills on time and stick to the established payment schedule. Don't forget to ask the billing department to send you a receipt for your payments.

Tips & Warnings

• Be sure to keep all of your receipts together in a safe place. Try to eliminate unnecessary expenses from your budget and make appropriate substitutions when possible. For example, get rid of things that you can live without (such as cable television, a cell phone or Internet service) until you pay off your medical bills. Also, try cooking your meals at home instead of eating out, and carpool to work with neighbors or friends.
• If you fail to pay your medical bills in a timely manner, the hospital or doctor's office may send your account to a collection agency. As a result, you may be required to pay late charges and collection expenses in addition to your current unpaid medical bills. Unfortunately, this type of information may appear on your credit history, which can have a negative impact on your credit score.