Stop Your Medical Bills From Damaging Your Finances

Far too many people end up being crippled financially by medical bills, even after they have been cured of their physical problems.

 

Luckily, there are some tactics you can use to stop yourself from getting into this position. Read on to find out more.

 

Start With a Personal Budget

 

The starting point to avoid the financial issues with medical bills is to create a personal budget:

 

Action Steps To Consider

• Create a budget, even if that budget is simply on notebook paper.
• Separate your expenses between fixed and variable, and take a hard look at your variable spending.
• Take steps to cut your variable expenses each month, and put the amount you save into a separate savings account.
• Fund a savings account for emergencies
• Carefully review each retirement plan offering from your employer.
• Ask about the tax-deferred investing component of your firm’s retirement plan. Do your investments grow tax-deferred?

 

Once you implement these steps, you’ll be in better position to address the cost of an illness or accident.

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Use Compensation to Cover Your Medical Costs

 

The first tactic that can help you avoid getting into crippling medical debts is to use any compensation that you receive to pay off what you owe.

 

Of course, to be able to do this you may need first to find a personal injury lawyer that can assess your situation and see if you have a case. After all, not all medical problems are the fault of someone else, and therefore not all will be eligible for compensation.

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Don’t Forget Insurance

 

Next, when it comes to health, prevention is always better than cure, and this applies to keeping your bank balance healthy too.

 

What that means is that even if you never plan on using it, investing in health insurance is usually well worth the monthly cost.

 

Of course, it’s even better if you can negotiate health insurance as part of the benefits package you get from your employer. Something you can learn more about here.

 

Shop Around for Hospital Costs (in a non-emergency).

 

If you are in an emergency situation, it’s evident that there won’t be time to shop around and find the cheapest medical facility.

 

However, when it comes to non-emergency surgery and treatments, it can be a smart move to compare your available options.

 

In fact, what is included in the price you will pay- such as medications, dressings, and even the services of an anesthetist- can vary from one institution to another, as can the overall cost.

 

To that end, getting quotes from a range of hospital, clinics and even non-emergency care centers can save you a fortune, and stop your medical debts from spiraling out of control.

 

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Don’t Always Pick the In-House Medical Credit

 

For many people, being ill or injured is a confusing and vulnerable time.

 

Of course, this means that when an official at the institution you are staying in offers you the option of paying for the treatment you need on medical credit, you’re likely to take it.

 

Sadly, this may not always be the best choice, because institutions still charge interest on the money they lend you to cover the treatment you need.

 

In fact, it could work out much cheaper to choose another loan or even a 0% credit card option instead. After all, if you can get the treatment you need, but not have to pay any interest on it, something that can be even more difficult if you need to take time off work to recover.

 

Use these tips to manage unexpected medical costs, and to get back on track financially.

 

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(email) ken@stltest.net

(website and blog) https://www.accountingaccidentally.com/