Medical Bill Assistance


Medical Bill Consolidation

Medical bill consolidation is one way to manage multiple medical bills owed to several different medical providers. While there are some benefits to consolidation, there are also consequences to this which may be detrimental.

Since medical billing can be messy, sometimes it is easier to consolidate all of those individual bills into one combined debt with a single monthly payment. You might owe the hospital plus several different doctors. Even some doctors may issue multiple bills. Consolidating those bills into one debt makes it easier to see what you owe and simpler to repay.

Sometimes a consolidation loan or line of credit is one way to handle it. A loan could come from a bank or credit union. Higher interest loans may come from consumer finance agencies.

There are also creditors that specialize in lending credit for medical expenses. CareCredit is one such lender that is favored by some medical providers, such as dentists or other practitioners. CareCredit frequently provides compensation to these providers for their endorsement or referral, so it is not an option to rush into. A similar approach could be to charge your medical bills to a single credit card.

While medical bill consolidation may make repayment simpler, there are some potential consequences.

If you default, it is more lucrative for a creditor to pursue legal action on a single large debt than for several small creditors to pursue legal action on much smaller debts. This could open up future legal action if you cannot pay.

Secondly, medical bills carry zero interest as long as you repay them in a timely manner. By consolidating your medical bills, you must begin paying interest immediately.

Finally, consolidating old medical bills can restart the statute of limitations on the debt. This can extend legal options for the new creditor. Additionally, it can keep that debt on your credit report for a full seven years beyond the date of consolidation or your last payment, whichever is later.

If you are sure that you would like to consolidate your medical bills, make sure that you choose wisely. The wrong option could cost you hundreds or thousands of dollars. It could also result in damaging credit references and legal actions against you. Your unpaid medical bills will not go away soon without action, so it is best to make sure you know what all of your options are to see if there is a better alternative to consolidation.