Chattanooga Bankruptcy Law Blog

Over 25% of Americans are having trouble paying off a recent medical bill, according to a survey by the Kaiser Family Foundation and the New York Times. But there are practical methods that may keep medical debt from becoming overwhelming.

An obvious but overlooked task is making sure that there are no overcharges for recent medical services. Doctors' offices and hospitals sometimes make billing errors. In fact, 80% of medical bills contain some errors according to some estimates. Bills should only contain charges for services and medications that were provided. If there is any charge that makes no sense or appears wrong, ask the health care provider for an explanation.

Do you consider yours an average Tennessee household? If so, then you've likely had your share of financial ups and downs in the past five to 10 years. Even if you have dual income earners in your home, economic strain is not uncommon in this state or throughout the country. How quickly and well you can bounce back when your financial train goes off-track depends on several factors.

Understanding the types of issues that often lead to serious debt may help you avert a disaster. Then again, if you're used to living paycheck to paycheck or having to tap into savings to make ends meet, it might not take much to spark a severe financial crisis. That's why it pays to know ahead of time what type of support resources are available.

Having a new credit card can provide perks and better credit. But this can also lead to problems such as credit card debt and a bad credit score. The best reasons for opening a new credit card include new member bonuses such as bonus points, miles, and cash back. Different rewards cards also give a variety of rewards for specific spending behavior that can reflect a Hamilton cardholder's spending habits. Cards may also provide different extras such as extended warranties on purchases, travel or car rental insurance or access to airline lounges. It is important to learn how to use these benefits.

A new credit card may be an excellent method to build a positive payment history by using the card and paying the full balance each month. This also improves the credit utilization ratio that plays a role in setting a credit score.

Medical expenses can be crippling. But, there are several ways to deal with medical debt. Ignoring bills can only make the problem worse. Health care providers will collect on bills for a few months before the account is turned over to a collection agency. When that occurs, the debt is placed on credit reports, which can impair a person's ability to borrow money. There may be lawsuits which could lead to a judgment, wage garnishment or bank levy.

An explanation of benefits, which is not a bill, should be reviewed carefully. An "EOB" identifies what has been paid by insurance and gives notice on bills that may come soon. Likewise, bills should be closely scrutinized. Assure that the doctor's office billed the insurance company correctly and follow up with the insurance company if a bill was appropriately paid.