Medical Debt: Strategies for Managing and Avoiding It

0:00Durham's story is making news on March 10th. Medical debt is a big issue for many Americans. About 2 in 10 people have a showing up in collections, and experts say the real number could be closer to 4 in 10 when you count all unpaid. Bills. These often come from surprise costs after treatment, even with insurance. The smart move is to avoid paying these bills with a credit card. Those carry sky-high interest rates that can drag on for years. Instead, talk to the doctor or hospital right away. They often offer payment plans with little or no interest, spreading payments over months or years. Medical debt gets better treatment from credit bureaus than other kinds. It usually does not hurt your score unless it is more than $500 and has been in collections for over a year. People still need to get care when they require it, so approach providers upfront about costs. Shop around for services when you can, as prices vary a lot, even with insurance. Health savings accounts are a great tool too.

1:01They let you say pre-tax money for medical needs and invested for retirement without a use it or lose it rule. When budgeting, prioritize grabbing your employers 401k match for free money. Then chip away at debt, build savings and boost retirement contributions slowly. Negotiate first before considering personal loans, and groups like credit counseling nonprofits can help guide you. This story is made possible by our sponsor. Head in, sound on, lights out. That is the routine, S-O-L-I, solelypillow.com.