Just like any other business a medical practice may also suffer extensive loss, lower revenue and eventually face significant problem in existing as well if it has lots of medical debts. It is best to deal with these debts and find out ways in which the patients will find it easy to make payments.
Offering flexible payment options and different affordable package is not enough to ensure a steady cash flow and number of patients towards a specific facility. It is also needed to make compromises and be flexible enough to make necessary changes to a seemingly strict business policy.
Debt settlement is one such useful process that will help a medical facility and prevent it from sinking as well as the patient in making the payment in more affordable terms. In debt settlement a significant part of the bill is waived by the doctor or the medical care facility to reduce the final bill you need to pay.
If you take help of a qualified and professional debt settlor or a debt settlement company you will be better off in negotiating as more often than not medical providers are reluctant to accept such requests for reduction.
However, with or without the help of a professional debt settlor, if you manage to get your bill reduced then you will need to make the payment in one lump sum or through monthly payments as per the terms.
Ideally, the debt settlement process is the first choice for most of the people though it has its consequences such as affecting your credit scores negatively. It is for this reason you are requested to go through the debt settlement reviews before you finalize.
Advantages of debt settlement
Debt settlement is beneficial for both the parties. This is an effective strategy that should be followed by both to make the overwhelming debt far more manageable from the perspective of each.
- If you can negotiate smartly then you can get a fair bit of your debt reduced making it easier for you to make the payment.
- On the other hand, the medical provider will not have to lose the entire amount due to non-payment or if your file for bankruptcy. Something is always better than nothing for them.
However, you will have to convince the other party that you are facing hardship and seriously contemplating for filing bankruptcy.
Better than bankruptcy
On your part, debt settlement will help you to avoid bankruptcy if you are neck deep in debt, medical and others. Bankruptcy will ruin your life and credit almost forever for several reasons such as:
- The fact will show on your credit profile or report and remain there for a decade
- If you have to look for fresh loans in the future, you will have to face a lot of issues
- Creditors will ask you a lot of questions if you file for bankruptcy
- Moreover, if you deny opting for bankruptcy and if you are caught later then you will be charged for being a fraud
- You may also lose your job if you do not tell the truth.
Hence debt settlement is the best way to get rid of your medical as well as other debts rather than filing for bankruptcy and thereby encountering the negative consequences associated with it.
The debt settlement entry will show in your credit report for only seven years but the most significant fact is that there will be no public records or evidences on it if you ever settle your accounts before.
Provide major relief
Debts are often overpowering and if you want major relief from them debt settlement is the most feasible way. Similarly, in medical debts you will have to pay a smaller portion of your existing debt and therefore save a considerable amount of money that you can use to pay off your other debts , if any, or spend it on some other useful purpose such as creating and emergency fund now to avoid such situations in the future.
However, if you really want to get relief from your debts you must ensure the following:
- You must not allow other debts to get accumulated in an expectation that you will settle it as well and
- You must opt for debt settlement only when you are experiencing a major hurdle in paying off your medical bills.
If you are strict and disciplined with your money and debt management plan it will be easier, faster and more effective to pay your settlement and become free from the debt burden. This ideally is the most suitable and low cost alternative to repay your medical debt.
The time factor is another important and beneficial factor of debt settlement. This factor will result in the speedy repayment of your medical debts as it ideally takes two to four years’ time almost deepening on the size of your bills and your debt settlement plan. This time is much less in comparison to any other normal way other than debt settlement to pay back your debts.
Tips to settle
However, debt settlement may be an easy process as the medical provider may not eventually agree to your terms. If you do not make the payments as per their terms they will hand it to collections and this will affect your credit score. Therefore, it is best to follow a specific strategy when you opt for getting your medical debt settled.
- First, you must weigh the positives of debt settlement plan
- Second, you must keep trying to convince the medical provider to accept your offer and not give up until they agree to it
- Make sure that the bill is accurate and you know exactly how much you owe to the medical provider
- Make sure that you have everything in writing once you manage to reach o to an agreement
- Create the fund to make the lump sum settlement and
- Lastly, demand a letter after paying noting that your debt has been paid off.
It is best to work directly with the debt collection agency as the process in complex and lengthy.