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Managing Your Credit and Medical Bills

As one of the leading forms of consumer bankruptcy, medical debt is a major problem that many people have to contend with to keep their credit rating at the highest possible rating.

Even if you have health insurance there are quite often additional expenses when medical care is needed that can amount to quite a large sum of money. Unfortunately for those people who are already having difficulty in paying excessive debt, they quite often have to stop paying medical insurance to cover their other financial needs.

Without health coverage, medical bills can build up to such an extent that there is never any likelihood a person would ever be able to afford to pay them in full.

It is easy to see why so many people enter bankruptcy due to their medical debt.

Unfortunately the medical practitioners are getting tougher on having this debt paid and resort to all means available to them for this medical debt recovery. These guys play hardball, and you need to be prepared in order to protect your assets and to keep the highest credit rating possible associated with your credit score on your credit report.

This can mean you will be getting a visit from a debt collector to recover the funds or the medical practitioner might decide to sue you for the money in which case your assets can be seized and your bank accounts frozen.

There are also becoming many more instances where people are refused medical attention simply because they haven’t paid the past due debt and only cash upfront payments will see that they get the medical attention that is needed.

This is even happening to people who are receiving ongoing medical care by a practitioner and have been unable to pay the full amount of that care to date. Even care for serious health problems has been refused due to outstanding and overdue medicall bills.

Where possible you should always try to keep some form of health insurance coverage, and when needed ensure that the provider pays for everything that they should. If a provider is negligent in these payments, your credit rating, credit score, and credit report suffer significantly. See The Credit Robbers for more details on this medical industry scam.

Review the expenses that are charged to you and be sure that they are correct before paying, as it is common for errors to be made that can be extremely costly, particularly when you’re already having difficulty making ends meet.

There are some options available where you can get medical discounts. You should make the most of these and get all you can. These apply particularly to people on low income and those who don’t have any form of health insurance.

Consider getting Medicaid which is available in most states to help cover any future medical expenses and also help to pay medical bills up to three months old.

Ask if you can set up an installment plan to pay off your past due medical bill to allow you to continue to receive medical care from your practitioner.

Always look at all the options that you might consider available in order to maintain proper health care, and that includes keeping your debt in check and maintaining your credit rating through a strong credit score and credit report.

Dr. Robert Miller, PHD
Investigations Analyst
www.TheCreditRobbers.com

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Credit Repair + Debt Elimination = 800+ FICO® Score Credit Report

Managing Your Credit and Past Due Mortgage

Other than bankruptcy, nothing damages your credit history, credit score, and credit report more than a foreclosure, so you will want to avoid it at all costs.

Add to that the emotional strain of losing your most valuable asset and the time and effort that has gone into building your equity in your home and you can see why it is ranked as one of the most distressing events that can happen in a person’s life.

The information below is a general overview of the terms that apply to most mortgages. You will need to check the terms of your mortgage to ensure that the same terms apply to you.

You will have 15 days after the due date for payment before you will be charged any penalties for late payment of your mortgage.

After that you will be charged a late fee and the bank will generally contact you to find out when payment will be made.

Once 30 days are up and you haven’t made payment, the bank will most certainly be in contact and request information as to why you haven’t paid them. If you are still having difficulty making the payment then you should contact one of the government agencies such as the U.S Department of Housing and Urban Development to get some assistance to work with your lender to resolve your payment problems.

Between 45 and 60 days the process moves to the next level where the lenders’ attorney will get involved and issue you with a notice of default which will detail the amount you need to pay to clear the arrears unless you have already contacted your lender to come to an arrangement for payment.

After 60 days if nothing else has been worked out, you will get a notice of acceleration which means the total amount of your loan and not just the past due amount is payable in full. You will also be told the date when your property will be sold to cover the mortgage if you can’t pay it beforehand.

This is the start of the foreclosure.

You still have time to avoid the loss of your house at this stage; however, the longer the mortgage is unpaid, the harder it gets to retain ownership. Even after 3 months and before the house gets sold, the lender will usually be happy to come to a suitable arrangement where you can clear the past due amount and get your payments current again.

This usually will depend on your past history and whether you have regularly missed payments.

If you fear that you will be unable to make the necessary payments due, then make sure you take action as soon as possible. Contact a bankruptcy attorney as this will halt the foreclosure and allow you some time to decide whether there are any alternatives that you can look into.

Bottom Line: Avoid bankruptcy and foreclosure with whatever resources that you may have. Following a bankruptcy or foreclosure, your credit rating will be “rock bottom”. It will take significant time and money to restore your credit score and credit report to the point where you are a good credit risk and have the ability to borrow or assume credit again.

Dr. Robert Miller, PHD
Investigations Analyst
www.TheCreditRobbers.com

Contact Us: Send a FormMail Message

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