Many people are riddled by credit card debt. This debt can sometimes be avoided by controlling spending and only using credit cards in extreme emergencies. Medical debt on the other hand is often caused by unexpected illness or injury. These are things that people would obviously like to avoid, but they aren't always able to.
Any Florida resident with unpaid medical bills will tell you that medical debt is frustrating. It is not like anyone wants to have unplanned medical emergencies. Yet, when an emergency happens, there is no other choice than to get the medical attention that is needed.
If you were suddenly sick, how would you pay for the medical bills? What about if you were laid off? Would you have enough money in savings until you found a new job?
Debts can quickly spiral out of control. What may start off as just some medical bills and credit card debt, can lead to repeated phone calls from creditors and the threat of wage garnishment. This in turn can lead to people seeking all types of debt relief, including bankruptcy.
Illness can certainly wreak havoc on a family. The medical bills and strain put on one person to take care of all of the family's affairs can lead to bills going unpaid and debt spiraling out of control.
When it comes to unpaid medical bills, part of the problem is that even once the bill is paid, the debt can stay on a consumer's credit report for up to seven years. This is particularly troubling, especially for the person who had an unpaid bill, but at no fault of their own.
The cost of medical debt can be financially crippling for many, resulting in a heavy financial burden that is hard to overcome. Even for patients who have some form of insurance coverage, with the high costs of medical care there can still be out-of-pocket expenses that can quickly add up. In many cases, it's not uncommon for these medical bills to lead a person to file for bankruptcy.One woman recently shared her story with a local news station. It was back in 2008 when she was diagnosed with organ failure. From there she was faced with a number of medical problems, which forced her to retire from her job with the Federal Bureau of Prisons. She had worked there for 18 years and is now still months away from qualifying for Medicare.
A Florida couple recently learned that their home was going to be foreclosed on because they had made their reduced mortgage payment early by one week back in December. And while Bank of America has since reversed this decision, the entire case goes to show that without any help the mortgage modification process can be somewhat confusing.
Times are tough right now. Many people have found themselves trapped beneath a large amount of debt. And while for some people this debt accrued due to spending habits, for many others it's a reflection of job loss and maybe an unexpected medical emergency. However, regardless of how the debt is there, with due diligence it is possible to take hold of the situation.
When credit card and medical bills start piling up, and it feels as though there is no way out, it may be a good time to start considering filing for bankruptcy protection as a way to take back control of finances.