Even if you are young and healthy, you could still have a medical emergency the next day and end up with some high medical bills. Because of how expensive treatment can be, the bills can quickly become overwhelming. While you might feel tempted to ignore them, it is important to pay them off so they don’t affect your credit score. If you get some high bills, there are a few tips to make them more manageable.
See if You Can Pay Them Promptly
Some doctor’s offices, clinics, or hospitals offer a discount if you pay everything in a lump sum soon after getting them. That might be a 10 percent discount, but you could ask for an even higher one. Find out what nearby clinics and hospitals are charging for their services and see if yours charged quite a bit more.
Of course, you will need to have enough money to make a lump sum payment. This could be an excellent time to make some extra cash. For example, if you were considering selling some unneeded items in your home to make more money, you might consider doing that now. And if you have a life insurance policy, you could sell that through a life settlement. When you need cash up front, you can review a guide on how life insurance buyouts work.
Act as soon as you get something in the mail since ignoring them is one of the worst things that you can do. Otherwise, they will get sent to a collection’s agency, and they will start to bug you. And your credit score will go down a lot as well. One of the first steps is to make sure that every charge is accurate since the system can easily make mistakes in billing, and that can result in higher-than-expected charges. For example, you might be charged for medications or services you never received. And if you were in the hospital for a while, you could get charged for an extra day, even if you checked out earlier.
Avoid Using Credit Cards
If you have credit cards, it can be tempting to put all the bills on the card to take care of them. However, this is a bad idea for several reasons. Many credit cards have high-interest rates if you carry a balance, and you might end up with a lot more debt because of that. It can affect your credit score the same way as ignoring your medical bills. You do have some negotiating room with medical bills, unlike other types of debt. Look into UPI payments and determine if you can use this payment strategy to assist with your medical bill payments as an alternative to credit cards. You will have to go through a third-party app but the difference may lie in the interest that you would pay with credit card usage.
If you set up a payment plan, you don’t have to take care of everything at once. And they usually don’t have much interest, unlike credit cards. To get an interest-free payment plan, you might have to read the fine print and negotiate with the department a bit. And depending on the office, the amount you pay can often be negotiated as well. Don’t be afraid to ask for a lower number if you feel the first is too high.