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Medical Debt Tip 5. Don't rob Peter to pay Paul

You aren’t robbing Peter – You’re robbing yourself!

In these difficult times, you may not have enough cash to pay all of your regular bills each month.  So you pay “urgent” ones, like the water bill and the mortgage, while you let the “less urgent” bills wait.

The truth is, getting behind on any bill can bring a huge price tag – both in mental stress and in real dollars.  You aren’t robbing “Peter.”  You’re robbing yourself, because in the end, you usually pay high interest rates and late fees, and you may even damage your credit record.  It simply isn’t worth it.  If you fail to pay your credit card bills, for example, you could trigger all kinds of fees and penalties, including some that could raise your interest rates to 30% or more!

Robbing Peter to pay Paul may mean paying one bill instead of another.  It can also mean sacrificing your health in order to protect your finances.  Today, there are more than 130 million Americans with a chronic medical condition.  Many of these conditions require consistent monitoring by a practitioner and daily medication, yet an increasing number of patients report skipping or rationing their medications and not making regular visits to their physician because of financial stress.  This can not only cause serious damage to your health, it can end up raising the overall cost of your treatment. This is especially true if you end up having to visit a hospital emergency room or a specialist as a result.

To avoid robbing Peter to pay Paul, remember you do save money by paying your bills on time.  If your financial resources are stretched too thin to cover everything, call American Financial Solutions to learn about your debt management options. Certified credit counselors can work with you to create a detailed plan for managing your budget and getting or staying on track with your debts. Visit us online and click on Get Started Now, or call today (888) 864-8659.

Published Oct 20, 2011.