Financial News Features

"A lot of times, medical providers' prices are wacky," Howard Dvorkin, a certified public accountant and chairman of Debt.com, told CBS MoneyWatch. Dvorkin recalls receiving a bill for a medical incident that required his daughter to be airlifted for treatment. The initial total? $18,000. He asked the treatment provider what rate they would have billed his insurance company and said: "That's the rate I'll pay."

“Think of a credit repair company like you’d think of a tax preparer. Sure, you can do your own income taxes, but sometimes it’s worth the money to hire a professional,” says Howard Dvorkin, CPA and chairman of Debt.com.

But before signing up for an Amazon credit card, think carefully about how often you'll actually use it, and whether you'll be able to pay off the entire balance every month, said Howard Dvorkin, a financial advisor and chairman of Debt.com. "On paper, getting an Amazon credit card for Prime Day makes dollars and sense. In practice, it's dangerous unless you're super-disciplined," he told MarketWatch in an email. "You need to be honest with yourself before making this decision," he added.

"I'm always amazed at what embarrasses people," said Howard Dvorkin, CPA and chairman of Debt.com. I've counseled rational adults who feel ashamed that they've been laid off from their job — even though they had nothing to do with the decision. It was market forces or business priorities. Yet these same people weren't embarrassed running up five-figure credit card bills when they were employed, then paying huge interest charges and other fees because they couldn't pay them off."

But if you feel like it’s professional financial help you need for your money stress rather than a therapist, there are free places to go for that as well, says Howard Dvorkin, a certified public accountant and chairman of the debt education website, Debt.com. “There’s no shortage of free assistance,” Dvorkin says. “Your bank or credit union probably offer free online budgeting tools that can help you squeeze every last dime from your income. Nonprofit credit counseling agencies ... offer you a free, in-depth debt analysis over the phone.”

When it comes to medical bills, you aren’t alone. Debt.com’s Medical Debt Survey found that close to 6 in 10 consumers are having a hard time paying medical bills in the face of inflation. The good news is that there are ways to pay. for it without racking up expensive debt. For starters, if you’re offered a medical credit card with an interest-free period, make sure you can pay off the bills within that time frame. If that’s not realistic, request a payment plan directly with the provider instead. Some doctors will offer interest-free plans for multiple years. Make sure to get the payment plan in writing to avoid any of the doctor bills being sent to collections, says Howard Dvorkin, CPA, and chairman of Debt.com. ​ If you have insurance and your provider declines to cover a procedure, Dvorkin says to appeal the decision. It also behooves you to go over the bill to spot any errors that may have added to the cost. Even saving a couple of thousand dollars can go a long way. “Health insurers make mistakes, too, so consumers should ask their insurance company about what they do and don’t cover. People with gap insurance should also check with their providers to see if their bills will be covered,” says Dvorkin. If all else fails and you have multiple medical debts, you can try to consolidate them into one loan. This will give you one monthly payment and potentially a lower interest rate. You can also try to settle the debt, although this will negatively impact your credit score. To settle, Dvorkin says to negotiate directly with the collection agency. “Consumers who find themselves with medical bills they can’t pay should prioritize keeping their bills out of collections — all while fighting to receive a reasonable price or payment plan,” says Dvorkin.