Ask The Get Out of Debt Experts Medical Debt

Should I Consolidate Medical Bills to Pay Them Off? – Damon

“Dear Steve,

I have about $7,000 in debt on my credit report for Dr. bills should I consolidate and pay them off or should I pay them off individually, my current savings status would allow me to pay them off but would leave me broke. Also, my bank still shows a loan from 15 years ago as “open” it is paid, all on time, will this affect me score?

How should I handle my situation?


Dear Damon,

If these medical bills are not charging you interest then I would use the debt snowball method to pay them off. If they are charging you interest then I recommend consolidation loans from If you decide to get a consolidation loan from this peer-to-peer lending network then let me know how to identify your loan request when it posts and I’ll gladly be one of the investors that funds your request.

Kudos for checking your credit report and looking it over. I’d suggest you get a consolidated credit report if you have not looked at all three bureaus. The link is the same place I get mine from.

The open loan is interesting. I suppose it could hurt you by showing you have more outstanding credit than you actually do but if it is still reporting right now that the loan is open as of this month and current then it could actually help you by being a good and aged line of credit.

And you deserve a pat on the back for not draining the savings to suddenly pay this debt off. Keeping that money is savings let’s you have an emergency fund and that’s just really smart.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.


  • Steve, Thanks for the feedback, it was useful. I had not heard of the “snowball affect” but it makes perfect sense nd I will use this method. I am not incurring interest on the medical bils and I did get a credit rating from all three bureaus, 584,548 and 594 respectively. What is considered an above average score?
    As far as the “open” loan, it does not show on the report as “OK” but only “white” marks.

    Thanks for the advice it is much appreciated!


    • Damon,

      Wow, your scores are low. For excellent credit they need to get up above 720.

      If you don’t have any new good credit being reported about you then get a couple of secured cards that report to the credit bureau. No need to carry a balance, just use them and pay them off each month.

      Glad I was able to help.



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