Negotiating a lower settlement on your unpaid medical and hospital bills in collections will save you far more money than taking out a consolidation loan. Try this avenue first.

Combining your obligations into one payment and stretching out the terms does not reduce your obligations. Origination fees and interest charges only serve to make it grow.


One of the biggest challenges of obtaining a debt consolidation loan for unpaid medical bills is that they frequently appear on your consumer report. Once there, they often suppress your credit score, which makes it very difficult to qualify.

A settlement program does not have a minimum credit score requirement, and may prove a better option if your history is already tainted.


Using a credit card to consolidate unpaid medical bills has more disadvantages than benefits. You could wind up hurting your credit score for years and reopening the door for creditors to haul you into court.

People with the resources to pay the balance in full every month have the greatest flexibility to earn rewards points. Copayments and deductibles add up very quickly.


A negative medical debt credit history can follow you around like a bad penny. It may even affect you when trying to buy a house.

Mortgage lenders will consider your debt to income ratio, your credit score, and other factors when evaluating your application. The amount you owe doctors, dentists and hospitals do not help your cause.


It would be nice is laws existed that wiped away medical debt credit history. It seems unfair that people who get sick or hurt get lumped together with those who overspend, or fail to manage their finances properly.

Learn about what existing laws say about what appears on your reports, and what collection agencies can and cannot do.