When many people think about debt, they think about people who have spent a lot more than they could afford. They think about people who have had too many shopping sprees. However, frivolous spending is not the main reason that people have debt that they cannot afford. Forty percent of people in America have medical bills that they can’t pay. It is also the top reason that people file for bankruptcy.
Twenty percent of people who are under the age of 65 have had trouble paying medical bills. These people have health insurance. Forty-two percent of people with medical bills have had to get a second job to cover their debt. Sixty-three percent of people with medical debt have used their savings account to pay their bills.
Even if you have health insurance, you may have medical bills that you cannot pay. Luckily, there are some steps that you can take to protect yourself.
Most people in America do not have enough money to cover a medical emergency. Thirty-four percent of people in America do not have any savings at all. You never know when you may have to make a trip to the hospital. It is advisable to have three to six months’ worth of savings in a savings account for any crises that may arise.
It is easier said than done, but starting a savings account early in life can make all the difference. You may need to adopt some lifestyle changes and create a budget for yourself. As you age, you’re at risk for more medical complications. You don’t want to be caught off guard when a health issue arises. Your bank can help you save money and provide you with options for savings accounts that fit your income and spending habits.
The Pros and Cons of Filing for Bankruptcy
If you’ve already acquired a lot of medical bills and are at a loss, bankruptcy can seem like a good option. It very well may be, but the best way to know is to speak with an experienced bankruptcy lawyer. A lawyer can lay out your choices for you and explain the ins and outs of filing for Chapter 7 or Chapter 13 bankruptcy.
While your medical bills are considered dischargeable debt, you may have other loans or payments that bankruptcy won’t be able to eliminate. Be sure to speak with a bankruptcy expert who can help you choose the best option for you.
The Louisiana bankruptcy attorneys at E. Orum Young Law Offices have over 35 years of experience helping the people of Northeast Louisiana successfully file bankruptcy. With over 20,000 cases filed, our seasoned attorneys can analyze your case and help ensure that your financial situation improves by the conclusion of the process. Contact us today for a free case evaluation. Our Trial Guarantee ensures that we will take your case to trial per your request.