If you’ve been hit with an unmanageable medical bill, you’re not alone – according to the Consumer Financial Protection Bureau, approximately 1 in every 5 households in the United States have overdue medical debt. Medical bills can be incredibly overwhelming and stressful, especially when they come unexpectedly or are higher than anticipated. Fortunately, there are some strategies you can employ to manage and pay off your medical debt effectively. But first–take a deep breath and try to release some stress–we promise you can figure this out. Now, keep reading to understand some practical options to help you pay off your medical bills:

1. Negotiate Your Medical Bills

Compared to other forms of debt, medical bills typically have more room for negotiating both the repayment options and amount owed. Negotiating your medical bills can sometimes significantly reduce the amount you owe, especially if you don’t have health insurance. Here are two approaches to consider:

• Negotiate on Your Own: Start by reviewing your medical bills for any errors or overcharges. Research the typical costs for the procedures you underwent to ensure your charges are reasonable. Contact the billing department, explain your financial situation, and ask for a reduction or discount. Be polite (remember that it’s not the customer service representant who creates the rules) but persistent – the squeaky wheel gets the grease. Hospitals often have flexibility, especially if you can demonstrate financial hardship.

• Hire a Medical Bill Advocate: If negotiating on your own seems daunting, consider hiring a medical bill advocate. These professionals can help identify errors, negotiate discounts, and set up payment plans on your behalf. While they can be very effective, do your research and be on the lookout for predatory services or scammers, and make sure any fees charged by the advocate are outweighed by the savings before committing.

2. Set Up a Payment Plan

Many healthcare providers offer payment plans that allow you to pay off your bills in manageable installments over time, sometimes even no- or low-interest plans. Here’s what to do:

• Discuss Payment Options: Contact the billing department and inquire about their payment plan options. Explain your financial situation and propose a monthly payment amount that fits your budget.

• Potential Fees: Some payment plans might include interest or administrative fees, so make sure to ask about any additional costs and get the agreement in writing.

3. Split the Payment Between Multiple Cards

If you have a bill that needs to be paid right away and if you have multiple credit cards with available credit, you can use a payment service like Kasheesh to split your medical bill payment across up to 5 cards. This can help you avoid maxing out a single card and negatively impacting your credit score.

• Consider Interest Rates with Smart Split: Be mindful of the interest rates on each card, using cards with lower interest rates can save you money in the long run. If you’re using Kasheesh to split the payment, take advantage of their Smart Split feature to ensure you’re splitting the payment in the best possible way.

4. Apply for a Medical Credit Card

Medical credit cards, such as CareCredit, are designed specifically for healthcare expenses. They often offer promotional financing options, like no interest if paid in full within a certain period.

• Evaluate Terms: Before applying, carefully read the terms and conditions to understand the interest rates, promotional period, and fees. After the promotional period, interest rates can be very high.

• Compare Alternatives: Compare the medical credit card with other financing options to ensure it’s the best choice for your situation.

5. Take Out a Personal Loan

If negotiating with the provider or using a payment plan isn't sufficient, consider taking out a personal loan to consolidate your medical debt.

• Interest Rates: Personal loans can have lower interest rates than credit cards, especially if you have good credit. Compare rates from different lenders to find the most favorable terms.

• Repayment Terms: Understand the repayment terms and ensure you can manage the monthly payments within your budget. Watch out for origination fees or prepayment penalties.

6. Look into Financial Assistance Programs and Non-Profit Organizations

Many hospitals and healthcare facilities offer financial assistance programs for patients who cannot afford to pay their medical bills. Additionally, there are several nonprofit organizations that provide help with medical bills.

• Eligibility: Check if you qualify for any assistance based on your income and financial situation. Hospitals often have charity care programs that can significantly reduce or even eliminate your bill.

• Application Process: Fill out the necessary paperwork and provide any required documentation to apply for assistance. Be aware that the application process can be time-consuming and require detailed financial information.

• Non-Profit Organizations: Research reputable nonprofits that provide medical debt assistance. These organizations can offer advice, financial assistance, and sometimes even direct payments. However, ensure the organization is legitimate and avoid scams that ask for upfront fees.

Conclusion

Paying off medical bills can be daunting, but there are multiple avenues available to ease the burden. Whether you negotiate directly with your healthcare provider, set up a payment plan, utilize payment services or financial assistance programs, or seek help from nonprofits, it's important to take proactive steps to manage your medical debt. By employing some of these six options, you should be able to find a solution that fits your financial situation and helps you move towards a debt-free future.