Fraudulent debt settlement companies make us feel as if not opting for settlement when having a medical debt problem is a crime. Let me make it very clear here that it is not compulsory or mandatory to opt for debt settlement just because you owe medical debt. If you have enjoyed a service, it is but obvious that you will have to pay for the same. There are no exceptions to this rule. You can opt for alternatives or check other options only if you’re not in a position to make payments.
Even then, you should contemplate opting for settlement of medical debt only if bankruptcy seems to be the only other option available. Hence, never fall for any advertisement or claim that makes debt settlement sound like a universal remedy for all types of debt problems.
You may have been thinking of selling your house or some other asset for very long time. You may have finally succeeded in disposing it off despite the depressed housing market. If you have adequate cash in hand and if you suffer from a medical emergency leading to a high medical debt, the smartest option is to make use of the cash in hand to pay off the debt.
Remember that there’s a huge difference in using the cash in hand and using your credit card to repay medical debt. In case of credit card repayment, you’re doing nothing but switching sources. You’re using one loan to replace another loan. Such a move increases chances of medical debt being treated as credit card consumer debt. There’s no difference in the debt problem that you’re facing and the problem that your neighbor is facing because he or she made impulsive purchases last Christmas.
Negotiating with medical institution will always give you the option of stating that the debt was not your fault. On the other hand, credit card issuers are never keen on believing borrowers who say that the debt was incurred without their fault. There are so many instances of irresponsible use of credit card debt that each and every person who faces card debt problems is considered irresponsible as far as finances are concerned.
If you are lucky enough to have liquid cash in your hand when a debt problem arises, it makes sense to use these funds. On the other hand, if you do not have money, then you have no option but to check out debt relief option.