Drowning in Credit Card Debt from Medical Bills? Here’s Why a Debt Management Plan Might Be Perfect For You
Going into debt over medical expenses is unfair. And yet for many Americans, it’s a reality.
According to one survey, medical expenses are the leading cause of credit card debt:
So if you’ve found yourself deep in credit card debt due to medical expenses, first know that you aren’t alone. Secondly, know that there are ways to get out of the deep end. In this blog post, we’ll reveal how a Debt Management Plan can help you do that. Then, we’ll tell you an alternative to putting your medical expenses on a credit card.
Why a Debt Management Plan is a Good Choice
Let’s face it: Medical expenses aren’t cheap. And they can accumulate very quickly. Before you know it, you find yourself drowning in credit card debt and unable to get out.
If you’re struggling to pay off your credit card bills due to medical expenses, then you might want to consider getting on a Debt Management Plan (DMP).
With a DMP, all of your credit card debt is consolidated into one monthly payment. Your interest rates are lowered significantly, as are your monthly payments.
Through our DMPs, for example, we’re able to help our clients to reduce their interest rates from an average of 21.75% to 2%. And we help them to lower their monthly payments from an average of $1,316 to $543. Which means that on a DMP, you’d be able to pay off all your credit card debt much faster.
So What’s the Catch?
There is none! The only downside to the program is that you can’t use any of your credit cards that are on the program (but you can keep one card open and off the program in case of emergencies).
You see, we have long-standing relationships with credit card companies and are able to negotiate with them to lower the interest rates. It’s in their best interests to do so; after all, they want you to be able to make those payments. Plus, the creditors are still able to recover enough money in interest so that it’s worthwhile for them.
If you qualify and enroll in a Debt Management Plan, your credit score might take a dip at first, but over time (after making regular payments), it will most likely improve.
Not All Debt Management Companies Are Created Equal
Before choosing a debt management company, you’ll want to do your homework. Because unfortunately, there are some companies out there that will keep your first payment, not pay your creditors on time, or worse, not pay your creditors at all.
One way to avoid this is to make sure that the company you go with is licensed, bonded and insured (like us!), with Certified Credit Counselors who are trained to give advice.
You can also get an idea of what the company is like during your initial credit counseling session. If the counselor you’re speaking with immediately tries to get you to sign up for a Debt Management Program, without first taking the time to understand your unique financial situation and make sure that you qualify, then that’s a pretty big red flag.
As for us? So far at DebtHelper.com, we’ve helped over 15,000 families get out of credit card debt. We’ve even helped people with over $93,000 in credit card debt become 100% debt-free.
One Last Word of Advice
You can’t do anything to change the debt that you have now. But there are things you can do moving forward (other than enroll in a Debt Management Plan!). Whatever you do, don’t put any future medical expenses on your credit card.
It might seem like a quick and easy fix, and chances are, medical providers will even encourage you to do this since they want to receive the money as soon as possible. If you say no to that, they might encourage you to open a medical credit card. But don’t succumb to this pressure. Simply ask for the bill and then set up a payment plan with the hospital or medical provider.
Interest rates will be much lower (or nonexistent) than they would be with your credit cards, and there is more room for negotiation if you find yourself unable to make a payment.
Talk to a Credit Counselor
Want to find out more about how our Debt Management Plan works? Jump on a call with one of our Certified Credit Counselors for a free, no-strings-attached, 100% confidential counseling session.