While a trip to the hospital or doctor’s office may be necessary for your physical health, the resulting bills can inflict serious damage to your financial health. Medical debt accounts for more than half of all bankruptcies in America, so it is imperative to stay on top of your medical bills.

The Countdown Begins

It is important to pay attention to your medical bills as every provider waits a different number of days before handing the bill to collections. During this time it is in your best interest to correct any mistakes made on the bill, sort out a payment plan, and engage with your insurance provider.

When Do Medical Bills Begin Impacting Credit?

As long as your medical bill is paid before your provider sends it to collections, you’re in the clear. Again, every provider will wait a different number of days before giving up on recovering money from you. If your medical bill is in the hands of a debt collector and it has been more than 180 days since billing, your bill will appear on your credit report where it will start reducing your credit score.

What Penalties Does a Borrower Face?

A single unpaid medical bill on your credit report can drop your credit score by 50 to 100 points and will last on your report for seven years. This has a serious impact on your ability to secure loans or credit in the future. It can often result in court action leading to a bank levy or wage garnishment.

What Can Be Done?

· Negotiate with your provider. Pricing structures in the health industry are more or less arbitrary, make sure you aren’t being taken advantage of.

· Negotiate with collectors. If a bill is resolved quickly, it can be removed from your credit report. This is entirely up to the collector, however.

· Arrange for payment. Get a payment plan down in writing, and stick to it. Your credit score will slowly improve after seven years.

· File for bankruptcy. If there is absolutely no other option for you, your medical debt can be discharged by declaring Chapter 7 bankruptcy.

A Better Solution for Debt Relief

If you need help negotiating down your debt or dealing with aggressive collection agencies, rely on the professionals at Progressive Debt Relief. Our established relationships with major payday loan companies and creditors gives us the experience and ability to settle payday loan debt efficiently and discreetly.

Through free consultations and no upfront fees, our financial experts will work with your creditors to negotiate and settle your payday loan debt for good. To find out more about our services, or to schedule a complimentary consultation, contact us today.