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How to reduce the likelihood of medical debt

On Behalf of | Feb 20, 2018 | Chapter 13 Bankruptcy

Texas residents in their late 30s through their early 50s are more likely to have medical debt than any other generation. On average, Generation X owes more than $19,000 in medical debt compared to millennials, who owe $11,622 and baby boomers, who owe an average of just over $2,400. One in five people younger than 65 who have health insurance struggle to keep up with medical costs.

There are several things people can do to lower their health care costs. One of those steps is understanding the benefits. Medical costs may go up if a person goes to a provider who is out of the network or fails to seek a necessary referral. People may want to take some time to review the policy and call the insurance company about anything they don’t understand.

Trying to save on premiums might be more costly in the long run. The cost of deductibles and co-payments could add up. People should also have emergency savings to hand so that medical costs do not cause a financial crisis. They may also be able to reduce medical costs by seeing a doctor promptly for any issues that arise. Delaying medical care can lead to greater costs in the future.

In some cases, people may find themselves unable to keep up with medical debt and other bills. They may want to talk to an attorney about options for debt relief. One of those options might be bankruptcy. People may be concerned that if they file for bankruptcy they will lose their home and other assets, but a Chapter 13 bankruptcy allows a person to create a payment plan and keep assets. Once bankruptcy is filed, it puts an immediate stop to creditor collection activities.