Pricey Health

50 million Americans, or about 15% of the population, don't have health insurance. For the uninsured, medical bills can be financially crippling. A small injury can result in tens of thousands of dollars in doctors' bills. Even if you're one of the lucky ones who do have insurance, you can still end up with medical debt. Many of the cheaper plans don't cover all types of necessary treatments, leaving the patient with massive bills.

In many ways, medical debt is very similar to other types of unsecured debt. If you don't pay the bills, the hospital may pass on the debt to a collection agency. It will go on your credit report and damage your credit score. This will make it difficult to get health insurance in the future.

In other ways, medical debt isn't as bad as other debt. Hospitals are usually more understanding than banks when it comes to looking at your personal circumstances. More often than not, you'll have the chance to pay the bills in installments. If you're really struggling, the hospital may even agree to reduce the bill instead of sending debt collectors to your door. However, the only way this will happen is if you go and talk to them instead of ignoring the bills.

Another way to reduce your medical debt is to check the bills for mistakes. Many hospital bills contain errors that result in over-billing. If you know what you're doing, you can do this yourself. If not, you can hire a specialist company that deals with medical debt. They'll go over the bills with a fine-toothed comb. They can also negotiate with the hospital on your behalf to settle the debt. Of course, they'll charge you a fee for this, so if you can do it yourself, it's better to do so.