If you are struggling financially, a sudden medical expense can send you into a spiral of debt. Even if you have insurance, copays and coinsurance can add up quickly. If you fall behind in paying your medical bills, some facilities will require upfront payment before they allow you to see a doctor. Before you neglect your health, consider the following ideas for reducing and paying your medical bills.
Check the Bill
Medical bills are full of errors. Some experts say that 50 – 80% of all medical bills contain errors that lead to overcharges. You need to check each line of any medical bill, which can be a daunting task, particularly if you have had complicated surgery. In that case, you may want to engage the services of a medical billing advocate, someone who has enough knowledge to catch these mistakes. When you find an error, you need to contact the hospital or clinic’s billing department and firmly ask that your bill be corrected. Do not be intimidated, and do not relent until your account has been corrected.
You should never hesitate to ask for reduced rates on your medical bills. If you are uninsured, request the hospital’s negotiated rate, the rate that they collect from insurance companies. You may not realize that the uninsured are actually charged the full rate while private insurance, Medicare, or Medicaid pay much less. Also, if you can possibly pay off the bill in full, you may get a substantial discount.
If you ignore a medical bill, you will end up in collections, and your credit will be adversely affected. If other alternatives fail, you can negotiate a payment plan with the medical facility. If you need cash now to get your account back in good standing, consider getting a quick loan from a loan establishment. These loans rely on your employment status rather than a credit check. The payments are taken directly from your bank account, usually on your payday. If you pay back the money quickly and in full, they can be a useful tool, especially where medical expenses are concerned. After all, medical treatment is not optional.
Huge medical bills can be overwhelming, but you can manage to pay off your debt if you use a few proven strategies. Never assume that your bill is correct or final. You can question charges and negotiate for a better rate. Keep up your payments with a little loan help, and soon you won’t owe the medical establishment anything.
Typically, lenders always tell you to avoid making any large purchases when you’re trying to acquire a home loan. A large purchase can result in an increase of debt, which can disqualify you for a loan. Even purchases in cash can be problematic because you may no longer have enough for the down payment or to cover issues that come up. Still, there are times when it’s simply unavoidable. Your car could completely break down, or you could have a business expense.
Always Purchase in Cash If Possible
Say you need to purchase a car. You may be better off purchasing a temporary $2,000 vehicle than getting a loan for the same amount — if you have the additional cash around. Simply spending a large amount of money won’t usually harm you, it’s taking out additional credit. Just don’t spend so much that you don’t have a buffer should you need to pay more for the property you’re pursuing.
Pay Attention to Your Credit Report
When you do need to make a large purchase on some form of credit, you need to pay attention to the changes made to your credit report. Make sure that all of the related credit queries only count as one against your account, and make sure that there are no errors on the reporting of the new account that you’ve created. But regardless, be prepared to see your credit score take a significant hit. Credit scores are based not only on the amount you owe but also on the average length of your accounts and whether you’ve pursued credit recently.
Go For Installment Loans, Not Credit Lines
Installment loans are generally better for your credit than credit lines. Installment loans include personal loans, auto loans and — of course — home loans. So if you need a thousand dollars, it may be better to take a personal loan rather than to take out a cash advance on a credit card– unless, of course, you will be able to pay the credit card back before the mortgage loan is finalized.
Obviously, it’s always best if you can avoid making a large purchase on credit until after your mortgage loan is dispersed. Still, a mortgage process can take a long time and there are times when you have to spend the money. You may need to request a smaller loan or look for a less expensive house, or contact home loan company, like Dynamic Mortgage Concepts Inc, about other lending options for your situation.
If you are in the market of buying a house you might be wondering what kind of loan is the best for you. There are many different kinds of loans out there and it can be hard to sift through the massive amounts of information. Here are some things that you need to know about the different kinds of mortgages that are available to you.
Adjustable Rate Mortgage (ARM)
An adjustable rate mortgage is a type of mortgage that has a low interest rate at the first and then raises after a certain period of time. Depending on the type of the ARM you could have a fixed rate for 3, 5, 7 or 10 years. After that the interest rate raises based on the market values.
The advantages of this type of mortgage are that you get a lower interest rate at the beginning. This is a great option for people who know they are going to live in the house for only a short period of time. For example, say you have a work assignment in a certain city for 3 years. In this case an ARM might be great.
The disadvantage is that there is a risk. If you are unable to see you might be stuck with a high interest rate that is hard to bare.
A Balloon Repayment
Much like the ARM the balloon has a lower interest rate at the beginning. What the lender will do is take the loan and amortized it over a certain amount of time. For example, you might get it amortized over 30 years so that your payments reflect what a 30 year mortgage would be, but the loan only lasts as long as the balloon, usually around 5-7 years.
At the end of that term you will be responsible to either refinance the home to a different kind of loan, or pay off the balance. For this reason, you should only do this loan as a short-term loan.
In this case you would choose a longer term on your loan, like 15-30 years and the rate is fixed. The rate won’t be as low as a balloon or an ARM but it will stay the same and cannot change. This is the best option for people who are planning on staying in their house for longer than 5 years. It also gives you peace of mind knowing that what you signed up for in the beginning.
By understanding the different types of mortgages you can choose what is right for you. To learn more about home loans contact a business like MCS Bank.