As a credit counselor with Family Credit Counseling Service, I talk to people often who are overwhelmed with credit card debt. Many times during a counseling session I will discover credit card debt created by a medical crisis that occurred due to lack of insurance or being underinsured.

We all know a visit to the doctor can be expensive, even with insurance. If you require emergency assistance or need to be admitted to a hospital, medical bills can reach into the thousands and tens of thousands. When the medical crisis has passed, many find themselves in the middle of a financial crisis.

Medical collectors will begin calling shortly. Many people that don’t know how to deal with collectors panic and take the advice of the collector, “Which credit card would you like to use to pay your balance?” Without thinking, unsuspecting patients just paid a medical bill that usually carries little or no interest charge using a credit card with high interest rates.

Many medical providers are non-profit organizations. To have the status of “non-profit” requires these medical providers give a certain amount of care at no cost. When you are faced with a high medical bill, your first question should be, “What type of financial hardship programs can I qualify for?” If this doesn’t work, ask to set up a payment arrangement directly with the medical provider.

Bottom Line: Don’t compound your financial situation by turning a large medical bill into a credit card payment that could take many years to pay off after you factor in all of the interest that will be paid. There’s almost always a better way!

If you have more questions about your financial situation, Family Credit Counseling Service has counselors who can help today!