Millennials, individuals who were born from 1981 to 1996, are prone to medical debt that goes into collections. Virginia residents may be interested in learning about some factors that contribute to this and what millennials can do to cover their medical debt.
It is estimated that less than 20 percent of millennials are uninsured. The average income for Americans who are between the ages of 25 and 34 is about $36,000. This means that the average millennial has less earning power. The third reason why millennials may be more prone to medical debt that is in collections is because they tend to move frequently, which increases their chances for bills getting lost.
If a medical bill is not paid for several months, it will go into collections. This can have a negative effect on a person's credit. The first step a person should take is to call their provider and see if negotiations are possible. The provider may offer a payment plan.
If the provider does not offer a payment plan, using a zero percent APR credit card to pay the bill may be an option. Or a person could try to negotiate a lump sum settlement on their own. If the debt is in collections, creditors may be willing to accept a lump sum that is less than what is owed as opposed to possibly receiving nothing.
A person who is dealing with medical debt could also work with a professional medical billing advocate. This individual may be able to negotiate the bill down to a fraction of what was originally owed.
Some individuals feel like they are drowning in debt and feel that bankruptcy is the only option. An attorney may be able to answer a person's questions about Chapter 13 bankruptcy or other forms of bankruptcy. The attorney might also be able to help a person file the appropriate bankruptcy paperwork and even represent a client in court.