Many Facing Health-Care Debt

Summary


Dear Savvy Senior: I guess you could say I'm one of those unfortunate people who took the gamble and lost. I didn't have adequate health insurance and after my wife's unexpected three-week stay in the hospital, we were hit with thousands of dollars in medical bills. We don't have the money. The hospital has already rolled the bill over to a collection agency and they're turning up the pressure. A friend of mine advocates taking out a second mortgage on the home to pay the loan, which right now looks like my only option. Any advice? - Flat Busted

Dear Flat: You do have a few other options, but I don't think taking a second mortgage should be one of them. If you do this you'll be converting unsecured debt into secured debt, which means that since you already have received the medical care, the hospital can't take it away from you.

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Many Facing Health-Care Debt

But if you put your house on the line with a second mortgage and then fail to make those payments, you could lose your house.

You're not alone in this ...

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