Americans fall into bankruptcy all the time. It’s estimated that about 400,000 Americans will file for bankruptcy in 2021. A year before that, 500,000 Americans filed for bankruptcy. So the number of bankrupt Americans might have decreased in one year, but experts believe it will increase again in the coming years.
There are various reasons why Americans file for bankruptcy. Reasons such as job loss, medical, and divorce can all lead to bankruptcy. American consumers also tend to spend more money than they can afford. This often leads to them using credit cards to make ends meet. Eventually, they cannot keep up with the payments and file for bankruptcy. However, the most common reason for bankruptcy among Americans is medical debt.
Medical Bills and Bankruptcy
The main reason why so many Americans go bankrupt is because of their medical bills. It’s estimated that about 60% of bankruptcies are caused by medical debt. It’s because healthcare is so expensive in the United States. The average American family pays about $28,000 a year on healthcare. That’s more than the average annual income in many countries.
If you’re struggling to pay your medical bills, you can do a few things.
Create a Payment Plan
If you’re having trouble paying your medical bills, the first thing you should do is create a payment plan. You can usually call the hospital or doctor’s office and ask to speak with the billing department. They will be able to work with you to create a payment plan that fits your budget.
You may also be able to set up an automatic payment plan. This means the money will automatically be withdrawn from your account every month. It can also make it easier to stay on top of your payments.
You should also try and negotiate your medical bills. It can be a good option if you cannot pay the total amount immediately. Negotiating if you think you were overcharged is also a good idea. Reviewing your medical bills can help you identify any potential errors.
You should ask for a lower interest rate if you can negotiate your medical bills. You should also try and get a more extended period to pay off the debt. The longer you have to pay off the debt, the lower your monthly payments will be.
Get Government Aid
You may be eligible for government aid if you’re struggling to pay your medical bills. There are various programs available that can help you pay your medical bills.
A few different government aid programs are available to help pay for medical bills. The most reliable program is Medicaid. Medicaid is a government health insurance program that helps low-income individuals and families pay for medical care. To be eligible for Medicaid, you must meet specific income requirements.
Other government aid programs that can help pay for medical bills include the Children’s Health Insurance Program (CHIP) and the Medicare program. CHIP is a health insurance program for children who don’t have access to health insurance through their parents or another source. Medicare is a government health insurance program for seniors and people with disabilities. To be eligible for Medicare, you must meet certain age and disability requirements.
If you’re struggling to pay your medical bills, exploring all options is essential. The government aid programs listed above are some of the most reliable programs available.
File for Bankruptcy
You may consider filing for bankruptcy if you struggle to pay your medical bills. Filing for bankruptcy can help you get out of debt and protect your assets.
There are two different types of bankruptcy that Americans can file for: Chapter 7 and Chapter 13. Chapter 7 bankruptcy is also known as liquidation bankruptcy. This type of bankruptcy allows you to discharge most of your debts. You will, however, have to give up some of your assets. Chapter 13 bankruptcy is also known as a reorganization bankruptcy. This type of bankruptcy allows you to keep most of your assets. You will, however, have to repay some or all of your debts.
The main benefit of filing for bankruptcy is that it can give you relief from debt collectors. It’s a great option if you need some breathing space. If you’re considering filing for bankruptcy, it’s important to speak with an experienced bankruptcy attorney. A bankruptcy attorney can help determine if filing for bankruptcy is the right option.
Get Help from a Charity
If you’re struggling to pay your medical bills, you may be able to get help from a charity. There are various charities that provide financial assistance to people who are struggling to pay their medical bills.
One of the most well-known charities that provide financial assistance to people with medical bills is the American Red Cross. The American Red Cross provides financial assistance to people who have been affected by natural disasters, such as hurricanes and floods. The American Red Cross also provides financial assistance to people who have been affected by other emergencies, such as house fires.
Healthcare costs can be expensive in the United States. However, various options are available if you struggle to pay your medical bills. These options can help you get out of debt and protect your assets.