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When you have medical and credit card debt

If you dread checking the mail each day because of the number of medical and credit card bills piling up in your Oregon home, you may simply need a strategy for dealing with them. Of course, ideally, you would simply write a check for at least the minimum payment to each. But, what if you only have enough income for one or two after taking care of your living expenses? We at The Law Office of Kim Covington often advise our clients on the best way to handle this type of overwhelming debt.

When you have to choose between them, which should you pay first, the medical or the credit card bills? According to NerdWallet, start with the credit card debt. Otherwise, the balances may go up due to the interest rates on the debts, and late fees are often attached when you miss payments, too. Making the minimum payments on multiple cards may still be challenging, though, so it may be an option to consolidate them all onto a no-interest balance transfer card and put all your discretionary income toward that balance.

Failing to pay your medical debts will still damage your credit score, but it does not have the same impact as a credit card debt in collections would. Instead of just shuttling the statements from doctors, hospitals and others to the side while you attack other debts, go through them each and attempt to negotiate lower bills, identify billing errors and possibly even have some charges dropped. For more information about dealing with unsecured medical and credit card debt, please visit our webpage.

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