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We read recently that one of the main reasons why people end up with a staggeringly huge pile of debt is because of big medical bills. It’s also one of the top reasons why people declare bankruptcy. We can emphasize. We had a procedure done last year to one hand where our co-pay was more than $600. If it hadn’t been for insurance, that 20-minue procedure would have cost us $6,500.
Use your credit cards
While this would not be an “optimal” solution it, too, would keep your bills from going to collection and keep your credit score from plummeting. Depending on how much you owed, you might have to spread your total out over several cards. You’d likely have a much higher interest rate than if you were to get a secured loan but would have more flexibility as to how and when you paid back the money.
Negotiate with your providersMany Americans facing huge medical bills have turned to debt settlement for relief. This is where you negotiate with your providers to get your debts reduced. If you’re a skilled negotiator, you may be able to get your medical bills reduced by thousands of dollars. If you’re not familiar wit debt settlement, here’s a short video that teaches how to do this.
File for bankruptcy
If you can’t find any other solution to those huge medical bills you could do what many Americans have done and declare bankruptcy. A chapter 7 bankruptcy would discharge most of your unsecured debts such as your medical bills, credit card debts and personal loans. However, a bankruptcy will drop your credit score by probably 200 points, making it very difficult for you to get new credit for as many as three years. Plus, it will stay in your credit report for up to 10 years and in your public record for the rest of your life.