Unpaid medical bills can be a drag. Most of the time, people don’t save for a medical emergency. Part of the reason for this is the idea that bad things only happen to other people. That feeling of invulnerability has bankrupted many due to unpaid medical bills. If you count yourself among these people, don’t worry. There are options. Medical bill consolidation is a great place to start.

Consolidation can have its clear advantages and disadvantages, just like any option. However, it is important that you weigh the pros and cons of consolidation against other alternatives before proceeding. Generally speaking, you should consider consolidating your unpaid bills if you have exhausted all other charitable funding possibilities, such as applying for hospital discounts, applying for state medical assistance programs, or borrowing money from a wealthy relative with little or no interest.

There are two methods to consolidate your unpaid invoices:

The first is through a loan from a bank or financial institution. You must remember that this type of loan is guaranteed, so you may have to offer collateral, whether it is your house, because or any other asset. One advantage of this route is that it carries a lower interest rate compared to an unsecured loan. Essentially, you are putting your credit history on the line here. Banks, especially now that times are tough, rarely offer consolidation to someone with a credit score below 600. Consolidation will restructure your unpaid medical bills so you can make lower monthly amortization payments. However, you’ll pay more in the long run because the process extends your home loan in addition to the interest rate that accrues over a longer payment term.

The second way is to seek the help of a debt management company that can negotiate with the credit collection agency trying to recover money from the hospital or the hospital itself to reduce unpaid medical bills to more manageable levels. One advantage of this method is that you don’t risk your credit history, although you will have to pay the debt management company for your problems. The service provider should be able to give you the details, but you should still insist that they tell the credit bureau that your unpaid medical bills have already been paid as agreed or paid in full.

When it comes to unpaid bills, the important thing is to never panic. Talk to your family, doctor, friends, or even colleagues and ask for their suggestions to find the best option for your situation. Know that you are not alone on an island. Millions of Americans are in the same boat as you. While that thought may not offer comfort, it does mean there are ways to settle unpaid medical bills if you just make a little effort to track them down.