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Is crowdfunding a good way to help pay off my medical debt?

On Behalf of | Nov 10, 2016 | Medical Debt

When you are overwhelmed by medical debt in Tennessee, you may feel like there is no hope of ever paying off your financial obligations. Medical debt is a common problem in this country. In fact, TIME Magazine reports that 26 percent of adults have some kind of money troubles that are related to health care. That is why some people have turned to crowdfunding as a way to raise money to pay off their debts.

Crowdfunding sites allow you to set up an account online and designate an amount of money you would like to raise. You can put up an explanation of your circumstances and appeal to people to donate money to your cause. People can then contribute, with the host site usually taking a small percentage as a fee.

If you are considering going this route, you are far from alone. It was found that in 2015, of all the campaigns posted on crowdfunding websites, 41 percent of them were related to medical debt. The average amount requested for those campaigns was $15,721. However, if you chose to go this route it may not always turn out the way you want it to. In fact, only 11 percent of crowdfunded campaigns to pay for medical bills ever reach their goals. For the ones that do fully succeed, it takes an average of 55 donors to become fully funded.

Therefore, you may wish to explore other options, such as negotiating a payment plan with your medical provider. This can help you by setting up payments that you know you can afford, as well as by preventing the debt from going to collections and hurting your credit score. This should be construed as legal advice and is provided only as general information on this topic.


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