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How to Get Out of Medical Debt

More than 40 million Americans are carrying some amount of medical debt, with the average debt totaling just under $2,000, according to a report from the Consumer Financial Protection Bureau (CFPB). Many men and women have medical debts that are substantially higher than that $2,000 average – sometimes so high, they can take a major toll on a person’s financial security, not to mention their emotional well-being.

While the Affordable Care Act has helped many men and women control their medical costs by providing greater access to insurance, many insurance plans, including those provided by employers, fall far short in providing the coverage that’s needed to cover medical expenses. Many high-deductible policies, while attractive for their low monthly costs, wind up placing huge financial burdens on the shoulders of the policyholders who can quickly find themselves overwhelmed by their out-of-pocket costs. And even more “traditional” policies still have deductibles, co-pays and other expenses that exceed the cap or simply aren’t included under the policy’s coverage.

Medical debt can affect your credit rating just like any other type of debt, and it can be just as emotionally devastating, maybe even more so since the debt involves something as basic as getting the care you need to stay healthy. In fact, the CFPB report also found medical debt comprises about half of all debt reported to credit bureaus, and many consumers have medical debt even when the rest of their financial “picture” is secure.

Using Credit Cards to Pay Off Medical Bills

Plenty of consumers are tempted to pay off medical bills using credit cards, and while that may seem like a good solution at the time (“I’ll be able to pay it off over time”), for most people, the accrued interest (and late fees) can add up quickly, and that $500 medical bill can become a $1,000 debt before you know it.

If you’re late paying your credit card, your interest rate can skyrocket and your credit score can plummet, leaving you in an even bigger mess. Lower credit scores can affect everything from your ability to obtain a mortgage, a car loan or a personal loan to the costs of your insurance policies and your chances of securing a new job or apartment.

Certainly, you need to do all you can to stay healthy; but why should maintaining your health come with such a high price tag? The answer is, it shouldn’t, and if you’re one of the millions with medical debt dragging you down, there is a solution.

Consolidating Debt - Including Medical Bills

At CareOne, our providers of debt settlement and debt consolidation programs will help you get out of debt, even if your debt is from medical expenses. Debt consolidation takes all your medical bills – and other personal debts if you have them – and combines it all into one amount that can be paid with a single payment each month. This once-a-month-payment is generally at a significantly reduced rate compared to an overextended credit card.

Plus, when you apply for debt consolidation, you’ll be working with a debt counselor who understands your situation and takes the time to create a debt relief plan that’s actually workable and geared for your success.

Just imagine how much relief you’d feel to know your debts are under control and all you have to think about is one affordable monthly payment – and no nagging phone calls day and night from relentless collectors. That’s what debt consolidation can do for you.

Learn More About Getting Out of Debt With Debt Consolidation

So how can you get started? It’s easy. Just call CareOne toll-free at 1-800-350-6285 right now. Our providers will work with you to create a customized debt relief plan so you can look forward to a better (and less stressful!) financial future.

Begin our online process to see your personalized savings.

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