Many people struggle to pay off their medical debt, and sometimes spotty insurance coverage can add to the woes. The stress of debt hanging over your head can be devastating for your financial, mental, and even physical health. But a few tricks can help you to avoid it.
How Medical Debt Accrues
It is easier to get into debt when you need to get an extensive medical procedure done, especially if there’s an emergency. If the procedure is not fully covered by your insurance or you can’t afford to pay for it with your own money, you may think of taking out a loan.
While that’s an option, it does not mean paying off a loan is an easy task. Besides, you may already be in debt from credit cards, loans, and other financial obligations.
The worst part is that you can accrue hundreds of thousands of dollars in medical loans for bad credit and remain stuck paying for them without any help from your limited insurance coverage. This is why you must do everything to prepare yourself for emergencies just as a precaution to pay for any unforeseen medical mishaps.
Valuable Tips To Avoid Medical Debt
Managing medical debt can be difficult, but you can avoid it in the future by taking some preventative steps.
Here are a few valuable tips worth noticing:
The best and most obvious choice is to pay the full amount for the procedure at the start.
Paying upfront would mean with no help at all, you are going to have to hand over the money as soon as the procedure is finished. While this can be difficult, it is the best way to keep yourself out of debt and get the procedure you need.
If you can pay cash upfront, some practices will give you a discount or a better deal since there will be no processing fees for using third-party payment software. Cash can keep you out of debt and save you a lot of troubles, though it should be readily available to you!
Learn More About Your Insurance
Your insurance may only cover a part of the expenses for your procedure, which is something you should know about before getting it done.
If you know that you will need a procedure soon, you should research what your insurance will cover and what option your doctor can give.
If your insurance offers partial coverage, then plan your finances prior. Doing your homework beforehand to understand your insurance can do wonders for your financial well-being.
Build An Emergency Fund
A great way to prepare for a possible emergency is to save some money and set it aside in an emergency fund.
Building an emergency fund is a great idea in general, but it can also be hugely helpful when there’s a medical emergency. If you have the full amount needed, or even part of it when a medical mishap happens, you can pay in full or have a small portion of it financed.
If you decide to save up an emergency fund, you have to make sure it is solely used for that purpose so that money is readily available to you.
A Flexible payment plan is a good alternative instead of seeking a medical loan.
It is different compared to a loan because there is no money being fronted, and the approval process is quicker. An easier and less-traditional form of lending is payment plans.
A few practices may directly provide this option to their patients on their own or rely on third-party lenders.
Payment plans, such as from Denefits, are hassle-free to access so you can get the financial help you need for your procedure. The biggest difference and benefit of payment plans from Denefits is that there are no credit check payment plans, meaning everyone is automatically approved. This can be hugely beneficial to patients who can’t get approved for loans or credit cards.
Since patient payment plans are easy to qualify for, it might be the better option for you to take advantage of without stressing over having to pay a large sum at once.
Medical emergencies can happen at any time to anyone. But by being prepared, you can avoid disasters such as getting into medical debt. Hopefully, the tips shared above can help you prepare better for the future.