Dealing with Medical Bills is confusing and frustrating. Settling them as quick as possible is a great way to steer clear out of credit trouble.

1.) You have the advantage in debt settlement, you have something the creditor wants, which is money. Do not take no for an answer, they always come around.

2.) When bad debt gets very old, it is sold for as little as $.02 on the dollar. Think of that when negotiating with them.

3.) The statute of limitations, in most cases, the debt will fall off in 7 years and become un-collectible.

4.) If you find that a debt collector is calling you for a debt older then 7 years, let them know that it is un-collectible and they can not do anything to you.

5.) Collection Agencies are companies that bought your debt with the intent of settling the debt for a profit. Lawyers often will collect on behalf of a hospital or clinic, this is not unusual to deal with someone outside of the original creditor. The original creditor has passed you along now and you will no longer deal with them.

6.) When you have an agent wanting to deal with you on the phone, start your offer at 15% – 25% of the original amount. Be prepared to pay in full if they agree.

7.) Get them to put the agreement in writing and send to you. Also, make sure that it states the account will show paid on the credit report. Never send money unless you have it documented that it is to settle the account in full.

8.) Terms: if you find you do not have cash to settle, ask for 12 payments over 12 months or whatever works out for you. As stated before, get this agreement in writing before you send a nickel.

9.) If you’re dealing with a hospital on a fresh debt, many hospitals have a hardship package in which you may qualify for financial assistance, subsidies or grant money to offset your medical burden.

10.) Bankruptcy is another way to settle your medical debts. You will have to make an appointment with a Bankruptcy attorney to see if this is a viable solution.