CNBC found that 66 percent of all American bankruptcies are due to medical issues. Those issues can be the high cost of healthcare or the time that the patient had to miss work.

When we have to go to the emergency room and cannot cover the cost with medical insurance, there is a great temptation to pay the bill with one’s credit card. Colony Associates, a firm with solutions for people with high levels of debt, suggests that this may not be the optimal solution.

High Interest Rates

One problem with credit card debt is the high interest rates. As of November of 2019, The Balance found the average consumer credit card interest rate is now over 21 percent. At that rate, it becomes very difficult for borrowers to ever pay off the debt.

Not All Health Care Facilities Charge Interest

If you cannot pay for your ER visit all at once, the first step is to speak to the health care facility’s billing department. Often, they have programs that help patients pay off the debt with monthly payments. Some facilities do not charge any interest for the courtesy of allowing you to pay a bit each month. This is far better than paying 21 percent interest if you pay for the medical bill on your credit card.

Some other medical care facilities will provide you the option of a credit card that their facility sponsors. The caveat here is to find out the interest rate and other terms. It could carry as high of an interest rate as your credit card.

Hardship Plan

According to Nerdwallet, some medical facilities offer hardship plans for people who meet certain income-level criteria. This will take some negotiation with the billing department of your health care provider.

Zero-Percent Credit Card

There are some credit cards that have an introductory rate of zero percent. The initial interest-free term is often either a year or 18 months. The catch is that the interst rate will go up to the industry standard after the interest-free term, so you have to consider if a year or so with no interest will allow you to pay the card off.

Personal Loans

Companies such as Colony Associates offer personal loan options that carry much lower interest rates than credit cards. They offer a definite payoff date for the debt. With the credit cards, there is not an end date.

Medical Bill Advocate

Nerdwallet also suggests that some consumers may benefit from the services of a medical bill advocate. Those are people with medical industry experience that can look over your medical bill for excessive charges. They can help you negotiate the amount of the bill. One group that can refer you to a qualified medical billing advocate is Medical Billing Advocates of America.

Don’t Wait

One of the biggest tips about paying off medical debt is to not wait until the bill is sent to collections. Often, the billing department of your medical care facility will be much more flexible than a collector. Also, being sent to collections will harm your credit rating.

Colony Associates advises consumers to seek other options to pay off medical debt than using a high-interest credit card. Call them for better solutions to pay off crippling debt