Are you a middle class family? Do you have private health insurance? Are you facing the normal budget tightening problems due to the recession? Are you in a position to make regular repayments to your debt with a compromise on some other expenses? Do you find it difficult to balance your monthly budget? In such a scenario, it is imperative that you take debt relief measures immediately. You may not be facing any debt problem as on date. However, they should not stop you from thinking about debt relief.
You should take a slightly pessimistic outlook to analyze your financial position. If your monthly income is just sufficient to make ends meet and is enough to help you make repayments, all it takes is a single financial emergency to lead to an imbalance. Now, you may say that you will take good care of your finances and make sure that no such emergency takes place. What if any family member meets with an accident? Or is diagnosed with a heart problem? Or falls down from the staircase and injures the head? You cannot postpone expenses in such a scenario, can you?
There are hundreds and thousands of individuals out there who were forced to declare bankruptcy because a medical emergency messed up their finances. What about insurance, you may ask. Bulk of those who opt for medical bankruptcy had private insurance throughout the year.
Even if the insurance policy pays for the operation or the immediate treatment, where will you go for money for the post operative care? When your budget is balanced to the last cent and when do not have any excess savings in your hand, how are you going to manage?
Further, if a productive member of the family suffers an injury, then your regular monthly income will also dry up. You’ll be forced to default on your debts even as medical bills increase. In such a scenario, even if the person starts working early, you will still face lot of financial problems.
Unless your income increases, which is unlikely considering the fact that the recession is still ongoing, you will find it very difficult to get your financial life back on track. Start with credit counseling, think about debt consolidation and if you are unable to make your repayments on time, you should consider debt settlement as well. Whatever you do, make sure you take remedial action or at least prepare for remedial action before the problem arises.