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Medical Bills & Debt Relief – How Can Online Relief Options Help?

The recession that hit the U.S. economy two years ago led to millions of bankruptcies. The first reaction of the people was to blame unsecured lenders – especially credit card issuers for this mess. These financial institutions simply refused to understand that people just did not have money to make the repayments on time. They used tried and tested strategy of intimidating the borrower hoping that he or she would pay up. None of this worked and people ended up simply filing for bankruptcy.

However, it is incorrect to target credit card issuers alone. They are not the only unsecured lenders out there. What about medical service providers? Surprised? How can doctors and hospitals fall in the category of unsecured lenders? The cost of health care has risen by close to 75% in the past five years.

As compared to this, the average income of an individual has increased by 15%. If you thought this was good enough, then let me point out that the inflation has increased by about 14%. The end result is that the individual continues to earn the same what he or she used to earn five years ago but the cost of health care has increased by a huge proportion.

What do people do to overcome this problem? They cannot simply postpone medical solutions, can they? People make use of credit cards and other financial tools to pay off their medical debt. The end result is that they end up defaulting on the credit card and still end up in bankruptcy. Hence, it is not sufficient to blame credit card issuers alone.

The medical fraternity also must take responsibility for trying to focus on its own profits without thinking of the national good. Filing for bankruptcy to overcome your medical problems is one option. However, this is not the sensible one. For starters, bankruptcy will sit on your credit history for ten long years. Further, you cannot declare bankruptcy, at least Chapter 7 bankruptcy, within the next six years.

This means that if you are caught in another financial or medical emergency within the next six years, you will have absolutely no solution available. You simply have to wait for the creditors to take legal action and secure a garnishee on your wages.

Instead, it makes sense to get in touch with service providers who can negotiate with your lenders. You can negotiate a drastic reduction in your debt ranging from fifty to seventy percent of the original amount owed. Even if all the creditors agree for fifty percent reduction, you will definitely save lot of money and find it easier to get your financial life back on track.


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