Friday, May 10, 2013

Don't Let Medical Debt Cripple You: Save For Your Health

Did you know that you can make all the right spending choices all your life, pay your dues diligently, live within your means and use cash for most purchases and still end up in debt? Some people fail to realize that above all of these habits, you need one thing to guarantee that you will never be placed in a debt situation. That important habit is saving.

Not everyone have spending problems. Some of them are quite responsible with their day to day financial transactions but because of lack of savings, one emergency can quickly turn their world upside down.

Even if you are following a frugal lifestyle, you can still end up in debt - especially when it involves a medical emergency. Due to the rising cost of medical treatment, professional fees and medicines, people are finding themselves buried in medical debt. To keep yourself from joining this statistic, you need start mapping out a plan to get yourself out of it. Yes, that is a must even when you feel like you are in the best of health conditions. This is not being pessimistic. You are merely being cautious and realistic.

First of all, you can forego the need for medical debt when you have adequate savings. That is actually the best option. By growing your reserve fund, you are creating a security net that will eliminate the need to borrow money just to pay for any medical treatment. Instead of adding the “borrowing” part into your worries, you can focus on getting well - or taking care of a loved one who got sick. Stress can aggravate any medical condition and make it turn for the worse. Eliminate this stress so you or a loved one can get better quickly.

Make sure this reserve fund is strictly for emergencies only. You can set a definition as to what constitutes an emergency. Is it for medical emergencies only? Or can you include anything that break down in your house or car.

The great thing about saving is in case you will not need it for an emergency, it can go to your retirement fund. That additional money can push your retirement to an earlier date. That is like hitting two birds with one stone.

You should also consider looking for a reliable health insurance. This can prove to be a big help in getting discounts on your medical bill. Not only that, you can escape all the high interest rates associated with medical debt - especially when you used your credit card to pay it off. Research on the different health insurance policies and take into consideration any illness that is in your family history. You should get a coverage that will help you deal with any future health condition that you may be subjected to.

Saving, is probably the wisest habit that you can develop to help put your finances in order. Do not handle your finances with a “come what may” attitude. If there is anything that you have to be very organized and meticulous about, it is your money. Always be prepared for any incident by growing your savings. No one ever thought that saving is a waste of their time, effort and money.

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