I've Gotten Sick or Hurt …Now What?

Getting sick or hurt can be tough, but following these tips may help ease the financial pain.

An unexpected illness or injury can mean pain both for you and for your hip pocket. In fact, medical bills are a leading cause of financial problems. Here are some tips to help you protect your financial health when facing physical health issues.

Scope out Your Situation.

Find out how much you own, how much you make, how much you owe, and how much you spend. Ask yourself these questions:

· What are some unimportant things that I could cut back on or get rid of?
· What are some things I could sell for extra money?
· Could I consolidate my debts to save money?
· Could I refinance my home to save money?
· Will I be able to return to my current job? If not, what other job options are open to me?
· What are some other ways that I could increase my income and cut costs?

Talk to Your Creditors.

As soon as you think you may fall behind on your bills, talk to your creditors. Your creditors want to help you protect your credit and work with you to help you keep up with your bills, but only if you talk to them right away. The longer you wait to talk to your creditors, the fewer options you have for protecting your credit.

Talk to Your Healthcare Providers.

Your healthcare providers may offer you options to make your medical bills less painful, such as negotiating your bill or allowing you to make payments on your medical bills. Ask your healthcare providers if these options are available.

Prioritize Your Bills.

Food, clothing, shelter, and medical care are your most important bills. Paying for those things is the most important. Some bills may need to be paid right away; others may be able to wait. Some bills may need to be paid in full; others may not need to be paid in full.

Get Your Debt Under Control.

If you went into debt because of your illness or injury, debt consolidation may be able to help you lower your total debt payments and free up extra money.

For more information about debt consolidation, visit our Debt Consolidation page.

Get Help.

Financial counseling can help you both now and in the future. Financial counseling can help you work with your creditors, make a budget and follow it, and find out about any special programs that you may be eligible for.

Look into home equity loans or lines of credit.

You may be able to get a better handle on medical bills and other bills by borrowing against your home equity. A home equity loan or line of credit may offer you a lower interest rate than other ways to borrow money.

Visit our Home Equity page to find out more about our home equity loans.

Protect Yourself.

Make sure that you get any promises or details about any financial transactions in writing, read everything carefully before you sign it, and ask a legal or financial expert to help you understand anything that isn't clear. Avoid signing anything that you don't understand or that seems too good to be true or too easy to do.

These are general recommendations not applicable to all financial situations. Every financial situation is unique. Further, the suggestions and recommendations contained within the content provided are not an assurance of any future result. Be sure to discuss your specific financial circumstances with a legal or financial expert before you take action. Contact us for more information.