How to Deal With Medical Debt Even If You Can’t Pay It All

Medical debt can feel like it takes over everything. Even with health insurance, the bills can pile up fast—copays, deductibles, prescriptions, and surprise charges. If you’re uninsured, it’s even harder to keep up.

You’re not alone. Millions of people are in the same spot, trying to figure out how to make the numbers work. The good news? There are ways to get control. This guide will walk you through how to understand your bills, protect your credit, and take smart steps to reduce what you owe.

Common Causes of Medical Debt

Medical debt doesn’t always come from a single event. Sometimes it builds up from routine care, and sometimes it hits all at once. Here are the most common reasons people end up in medical debt:

• Emergency care: Accidents, ER visits, and unexpected surgeries
• Insurance gaps: Out-of-network providers or uncovered procedures
• High deductibles and copays: Expenses before insurance coverage even kicks in
• Prescription costs: Ongoing medications that add up month after month

Review Your Medical Bills for Errors and Overcharges

Before paying any medical bill, make sure it’s accurate. Medical billing is complicated, and errors are more common than most people think. Taking the time to verify each charge can save you hundreds—or even thousands—of dollars.

• Request an itemized bill: This breaks down every charge so you can see exactly what you’re paying for.
• Compare it to your Explanation of Benefits (EOB): Make sure the services listed match what your insurance processed.
• Look for duplicate charges or services you didn’t receive: These are more common than they should be.
• Keep detailed records and notes: Track phone calls, emails, and letters related to your bills.

Always follow up in writing for documentation.

Know What Your Insurance Plan Covers and What It Doesn’t

Insurance doesn’t always make medical costs simple. Even with a decent plan, you might get stuck with unexpected bills. The key is knowing how your coverage works so you can avoid surprises.

• In-network vs. out-of-network: Using an out-of-network provider usually means higher costs or no coverage at all.
• Deductibles, copays, and coverage limits: Know what you’re responsible for before your insurance pays anything.
• Call for clarification: Don’t assume something is covered just because it seems like it should be. Ask for specifics and get names and dates for your records.

How Medical Debt Affects Your Credit in 2025

Medical debt used to tank your credit score the same way a missed credit card payment would. That’s no longer the case—but it can still affect your finances if you ignore it.

• Medical debt won’t appear on your credit report for 180 days: This gives you time to review the bill, dispute errors, and set up payments.
• Paid medical collections no longer appear on credit reports: If you’ve already paid it off, it should disappear.
• FICO 9 and VantageScore 4.0 weigh unpaid medical debt less: These newer models are more forgiving—but many lenders still use older models.

Medical debt hurts your credit less than it used to—but it still matters if ignored.

See also: How Medical Bills Can Hurt Your Credit Score and What to Do

Practical Ways to Pay Off or Reduce Medical Debt

You don’t have to pay your entire medical bill upfront. Hospitals and doctors are often more flexible than credit card companies or banks—as long as you communicate early. These strategies can help reduce what you owe or make payments more manageable.

Set Up a No-Interest Payment Plan

Call the billing office and ask about a monthly payment plan. Most medical providers offer interest-free options if you commit to regular payments.

• Contact the billing office directly: Don’t wait for collections—call as soon as you get the bill.
• Ask about income-based hardship plans: If your income is limited, you may qualify for reduced payments.
• Always get the terms in writing: Verbal promises don’t count. Make sure everything is documented.

Ask About Financial Assistance

Many hospitals offer charity care or financial aid programs that can reduce or eliminate your bill—especially if you’re uninsured or your income is low.

• Mention charity care or hospital forgiveness programs: These programs often cover a portion—or all—of your balance.
• Ask how to apply: Most hospitals require a short application and proof of income. It’s worth the effort.

Negotiate the Balance

If you can pay a portion upfront, you may be able to settle the debt for less than the full amount.

• Call and offer a lump sum for a lower amount: Even a small discount can make a difference.
• Mention organizations like RIP Medical Debt: Some hospitals work with nonprofits that buy and forgive medical debt for people who qualify.

Use a Medical Credit Card (With Caution)

Some providers offer medical credit cards with a 6–12 month interest-free window. These can help—but only if you pay them off before the promotional period ends.

• Be cautious: If you don’t pay in full by the deadline, interest charges kick in retroactively.
• Only use if you’re sure you can repay in time: Otherwise, you could end up deeper in debt.

What to Do If Your Medical Debt Is in Collections

If your bill has already gone to collections, your approach will need to change. Medical debt in collections is still negotiable, but it comes with more urgency.

• Request debt validation: Ask the collection agency to prove the debt is accurate and that they have the right to collect.
• Call the original provider: Sometimes they can pull the debt back so you can deal with them directly—but not always.
• Get any agreement in writing: Never pay or settle a debt based on a phone call alone.
• Consider a goodwill letter if it’s already paid: This can sometimes lead to the debt being removed from your credit report.

See also: How to Remove Medical Collections From Your Credit Report

When to Get Help From a Credit Counselor or Debt Relief Company

If your medical debt is part of a bigger financial problem, it may be time to bring in help.

• Free nonprofit credit counseling: These services can help you review your options without trying to sell you anything.
• Medical debt-specific settlement companies: Some debt settlement companies specialize in negotiating directly with hospitals and providers.
• Know the pros and cons: A professional negotiator might get a better deal, but fees and credit impact vary. Always ask questions before signing up.

Final Thoughts

Medical debt can happen to anyone, and it doesn’t mean you’ve failed. The system is complicated, and the costs can be overwhelming—even for people with insurance. What matters most is how you respond.

The sooner you take action, the more options you’ll have. Whether that means setting up a payment plan, asking for help, or working with a counselor, there’s always a next step you can take. Don’t ignore the bills—tackle them head-on with a plan that works for you.

Frequently Asked Questions

Can I be sued for unpaid medical debt?

Yes, a hospital or collection agency can sue you for unpaid medical bills. If they win the case, they may be able to garnish your wages or place a lien on your property. Respond to all court notices, and consider speaking with a legal aid service if you can’t afford an attorney.

Does medical debt expire or go away on its own?

Medical debt typically has a statute of limitations, which varies by state—often between 3 to 6 years. After that period, collectors can’t sue you, but the debt may still appear on your credit report for up to 7 years from the date of default unless it’s paid or settled.

Will applying for financial assistance hurt my credit score?

No, applying for hospital financial assistance won’t affect your credit score. These programs are designed to help, and they’re not reported to the credit bureaus. In fact, getting approved could prevent your bill from going to collections.

Can medical debt be included in bankruptcy?

Yes, medical debt is considered unsecured debt and can be included in both Chapter 7 and Chapter 13 bankruptcy filings. If you’re considering this route, speak with a bankruptcy attorney to find out whether it makes sense for your situation.

What happens if I ignore my medical bills completely?

Ignoring medical bills can lead to collections, damage to your credit score, and even legal action. It also limits your options for negotiating or qualifying for assistance. It’s always better to address the bill, even if you can’t pay in full right away.