Simple strategies to tame debt

If you find that a bill from a hospital, the IRS or your credit card company is difficult to pay, here's comforting news: Help is available. The key is reaching out early and knowing what to ask for. Here, how to request a pause, reduce and erase debt to restore peace of mind

- Gabrielle Lichterman

Shrink medical fees

Got a hospital bill you can't afford? Don't rush to put it on a credit card. “Paying immediately can lock in charges that might otherwise be reduced,” explains Kim Cole, credit counseling manager at the nonprofit financial counseling agency Navicore Solutions. Instead:

Ask for details

Contact the hospital’s billing department and request an itemized bill, recommends Cole.

“Medical billing errors are common, including duplicate charges, services never received, incorrect dates or markups for routine items,” she says. “Reviewing an itemized statement not only makes errors easier to spot, but it signals to the hospital that you're paying attention, and that can often lead to corrections.”

Appeal insurance denials

Health insurers may reject your claim or pay less than expected—but it's important to challenge that decision, says Cole. Ask for a written explanation and submit a formal appeal.

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