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Top best answers to the question «Should i pay off medical bills or credit cards first»
Experts advise to pay the mortgage and credit card bills first, but do not ignore the medical bills. Decide on a plan, talk to your doctor or hospital and then make the agreed-on payments on time.
Experts advise to pay the mortgage and credit card bills first, but do not ignore the medical bills. Decide on a plan, talk to your doctor or hospital and then make the agreed-on payments on time. Almost every hospital will work with an honest consumer.
It's best to pay off credit card debt first. Even when medical debt comes with interest, credit card interest rates are still typically much higher.
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If you’re concerned about your credit score, the smart play is to pay the credit cards first. Medical bills aren’t reported to the credit bureaus until they go to a collection agency. Missed credit card payments are reported if you skip even one payment. Try, at least, to make the minimum payment to your credit card account.
And it never hurts to ask, especially when it means saving money. Before you pay off a medical bill on a credit card, first exhaust all your other avenues for reducing or repaying the balance,...
Can You Pay Medical Bills Using a Credit Card? The short answer: yes, you can. Most hospitals will give you various options to pay bills, including debit cards, checks, cash, and even credit cards. That doesn’t necessarily mean you should use a credit card, however. Why Paying Medical Bills With a Credit Card is a Bad Idea
If you get a medical credit card without fully understanding the terms of your agreement, however, using a medical credit card can be a big mistake. If you don’t pay off the entire balance before the end of the promotional period, you could get hit with significant interest charges you didn’t expect.
We’ll talk about some of these in more detail, but first let’s explain why using credit cards is a bad idea. Don’t Use Credit Cards. So why exactly is it a bad idea to put medical bills on your credit card? The reason is that if you can’t pay the balance in full before the month’s end, you will be subject to interest, and this could lead to an expensive repayment (and potentially a long cycle of hardship).
If you are not yet ready to purchase a home and have at least 6 months time line, the best course of actions are to pay all bills on time and pay down your credit cards debts. If you have a thin credit file, open a new credit card account or secured loan from your bank using your saving account as collateral.
We recommend working on the newest debts first, because they will be showing on the credit report the longest and are farthest away from reaching your state’s statute of limitations. The only exception is if the creditor is taking legal action against you.
Paying off medical debt with a credit card can be a bad idea unless you’re trying to earn credit card rewards and can pay the balance in the same billing cycle, says Bruce McClary, a spokesman for the National Foundation for Credit Counseling. Yet a 2020 study by the Commonwealth Fund found that around one third of underinsured survey respondents took on credit card debt to pay medical bills. Additionally, 37% said they’d depleted their savings to pay medical bills, and 40% said medical ...
Generally speaking, you’ll want to focus in on your unsecured debts first. These are debts like credit card debt, medical bills, personal loans, pay day loans, and unsubsidized student loans. All these debts usually have high interest rates because they have no assets (or security) attached to them.