How Can I Get Out of Medical Debt. I Have No Credit Card Debt. – Jamie

“Dear Steve,

I have 42,000 dollars in debt it is mostly medical bills and no credit card debt I’ve never had a credit card how can I get out of debt.


Dear Jamie,

In its most basic form getting out of debt is easy. All you have to do is have extra money each month, after you’ve paid all of your other expenses, and use that money to pay down your bills.

The problem with large medical expenses is usually that, there are very large. Also, people with ongoing medical bills find it very difficult to locate extra cash to use to repay. It comes as no surprise that large medical debts are one of the beating reasons why people end up going bankrupt.

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The best thing you can do is to contact her medical provider and attempt to negotiate a repayment plan that you can realistically afford. This means that you should not overpromise a payment that you can’t make. In order to figure out exactly what you can’t afford to promise, you’ll need to track all of your expenses for the next 30 days and find out how much you really spend and how much is left over that you can use for debt repayment.

During this repayment time I don’t want you to shortchange yourself by not getting into the habit of saving some money every month. You need to get into the habit of saving money on a regular basis. These emergency funds are needed to help you to deal with any unexpected expense that comes up, and they always do. Just get a boring old savings account, nothing fancy, and start by depositing a regular sum of money into that savings account on a regular basis.

After tracking your expenses for 30 days and determining what you can afford to allocate towards debt repayment, and after you started saving, the money left over is what you have for debt repayment.

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If after speaking to your medical providers you find that the money left over is not going to be sufficient to meet their demands for a mutually agreeable debt repayment plan, then you may have to look towards more dramatic and drastic solutions such as bankruptcy. To investigate bankruptcy, speak to a local bankruptcy attorney in your area. Most bankruptcy attorneys offer a free bankruptcy consultation to allow you to come in and speak to them about your situation without any obligation or cost.

Your situation highlights the great battle exists in America today regarding the cost of health care. Just one illness or accident can push you into a financial death that can only be emerged from, for many, by bankruptcy.

Hopefully in our lifetime a solution will exist that will provide affordable universal health care for all Americans so that people in the future will not have to deal with this most unfortunate situation.

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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.
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