Debt Consolidation To Pay For Medical Insurance

Consolidating your debt enables you to settle your medical insurance in easy installments, and some credit agencies even include credit cards, car insurances, or a home mortgage, if you have any, under this scheme. It must be said though that not everyone is qualified for debt consolidation. First, you are not bankrupt in any way and still have some residual fixed income, second you are not eligible for federal or state Medicaid, and third, you do not receive any assistance from religious groups or any non-profit organizations.

If you are looking for a quick fix for your medical insurance, then debt consolidation is definitely not for you. Consolidating your debt works because the service provider is willing to reduce scheduled payments to a minimum by extending the period for a longer period. This is the only drawback. Of course, you’ll opt for merging in the hope that the tide will turn for you. You may be in bad shape now, with a slowdown in the economy and a high unemployment rate, but it won’t always be that way in 10-20 years. If you have the extra money, you can settle the consolidated debt at any time.

There are two types of debt consolidation for medical bills:

insurance without collateralBasically, you can take advantage of another insurance to pay your medical bills. The amount the credit agency will release will depend on your credit history, family income, or additional financial resources. You can then use this amount to settle your medical insurance. The screening process is very rigorous but only because of the distinct advantages. In the event of a default, for example, it will not affect your credit score because you are only liable to your service provider.

Debt Management – The company you hire will assign a insurance manager who will be responsible for contacting your hospital, doctor, or insurance company to negotiate medical insurance discounts or offer an affordable repayment period. Unlike an unsecured insurance, under this scheme, you put your credit score to the test although some prefer debt management over the former because there is no money shared between the merger and the person who hired its services. In the meantime, the company earns either a fixed amount or a percentage of the money saved as a result of negotiation.

If you still have some assets to sell or if you have a wealthy relative who can lend you money to pay off your medical insurance, it is best to keep debt consolidation for a while.

When a medical insurance proves to be too burdensome, why not consider Chapter 7 and Chapter 13 bankruptcy for some deferment? Don’t think of it as running away from your responsibility. Times are tough so you need some help getting back on your feet again. Bankruptcy has its advantages and disadvantages, so it is best that you speak to a bankruptcy attorney because they should be able to explain to you what to expect when you seek legal protection from your creditors.