Experiencing serious medical problems is awful enough without also understanding the financial pressure that it is causing you. The unfortunate fact is that the vast majority of all bankruptcies which are recorded this coming year may be the direct result of excessive medical bills. You have 3 main alternatives if you are currently experiencing health-related bills that you simply cannot manage. You may settle the debt, seek out a healthcare debt consolidation loan or you can seek bankruptcy relief. Let’s look at your 3 alternatives so you can best determine what the right option for you is.

Debt negotiation is one alternative to handling your health bills. This is where you go to your creditors and make a deal to enable them to take lower than the full amount which you owe on the bill. Depending on your situation, the amount that they will accept can vary, however very often you can save between 40% and 60% of what you are obligated to repay. Although there are many firms available that advertise that they can handle healthcare financial debt settlement for you, negotiating debt by yourself is by and large a significantly smarter decision. The financial debt arbitration industry is highly not regulated, and several experts believe that the overall industry is a sham. Regardless of whether or not they achieve a successful settlement for you, most demand non-refundable upfront fees of at least 20% of what you owe.

Another option which can help some men and women bring their monthly payments down to a more manageable level is health-related unsecured debt consolidation. Although it can be a fantastic way to avoid collection calls and save your credit, one thing you should understand is that when almost 100% of the time, health-related personal debt consolidation involves using your home as collateral. So, before you make this decision, you should you carefully look at your situation and decide if this is a good option for you. You should understand that if you fail to make your payments, you are placing your home at risk. Is it wise for you to turn unsecured debt into secured?

The last alternative is to file for health bankruptcy. Because it will impact you for ten years, this should be done only as a last option. Before seriously considering bankruptcy as an option, you will need to seek the advice of an attorney. New laws that were passed in 2005 mean that not everyone qualifies for a Chapter 7 bankruptcy. If you do not qualify for a Chapter 7, it may be smart to try to negotiate your debt or consolidate rather than considering filing for Chapter 13.