If you’ve ever had to endure a hospital stay, you know that every single service administered – from the CAT scan to the pudding cup – costs multiple times more than you would ever pay outside of a hospital. Quite frankly, when you get your final hospital bill, it’s enough to put you right back in the hospital. Upward of 43 million Americans currently have overdue medical debt on their credit reports. It’s not unusual to hear stories about people who can’t buy homes or manage day-to-day bills because of looming medical debt.

While FICO recently announced that its new scoring system, FICO 9, will reduce the impact that medical debt has one’s credit score, the damage is already done for many. These bills can stick with you like a bad chronic rash. Some doctors aren’t willing to even wait for insurance payments; they send the bills off for collections. That’s when it gets really ugly. It’s bad enough knowing how deep in debt you are, now you have the harassing phone calls from collections companies, loan rejections, etc., hounding you day and night.

All is not lost. There are debt management programs that may be able to help you. Speak with a qualified and experienced debt management lawyer like Bob Jacovetti. He has helped countless families get back on track financially.

Rather than letting inflated medical bills send you directly into bankruptcy, there are some steps you can take along the way to resolve these debts without completely torpedoing your credit and borrowing power. One of the more common ways to resolve out-of-control medical debt is to have a skilled negotiator contact your creditors about debt settlement. If your creditor is willing to settle for a portion of the balance and agrees to mark the debt paid following the settlement, that may be extremely helpful to you. Creditors consider settlement offers quicker from bankruptcy attorneys because they are able to see you are serious about wanting to settle the debt. Many would rather get a portion of what you owe than nothing – which is likely what they would get if you file for bankruptcy.

Debt settlement will likely have a temporary impact on your credit. However, not paying your debts at all will have a far more significant effect on your credit report and FICO score.

Bob Jacovetti is a knowledgeable and qualified NY debt management attorney with years of experience helping clients responsibly dig themselves out of debt. If an alternative to bankruptcy is not in your best interests, he will help you file for bankruptcy protection. Contact him today for a free consultation about your debt.