Can debt relief help with unpaid medical bills? What experts say

CBS News

10-06-2025

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There are multiple debt relief (and DIY) options that can help you tackle your unpaid medical bills.
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Despite recent efforts toward medical debt reform, many Americans still deal with piles of medical bills. A 2024 analysis from Peterson-KFF shows that about 20 million adults — nearly one in 12 — have unpaid medical debt. Around 14 million of those owe at least $1,000, while 3 million owe $10,000 or more.
"Most people don't worry about medical bills — until they do," says James Lambridis, CEO of debt relief platform DebtMD. "Medical bills usually come without warning, and they're often much more expensive than expected."
Compound these balances with other challenging factors like stubborn inflation, high interest rates, and economic policy concerns, and consumers are feeling the pressure to get out from under their medical debts.
For some, debt relief strategies may be able to help. Are you one of the millions of Americans looking to tackle medical debt? We asked some experts about your debt relief options.
Start tackling your medical debt here now.
Can debt relief help with unpaid medical bills?
If you're dealing with medical debt, there are several debt relief options you might explore. These include:
Credit counseling
The first option you might consider is credit counseling. Credit counselors can help you "Create a budget, prioritize payments, and can potentially assist with other high-interest debt to make the medical debt more affordable," says Thomas Nitzsche, a financial educator and vice president of public relations at Money Management International, a nonprofit credit counseling agency.
According to Nitzsche, about one in five of the company's customers come to them with medical debts.
"Credit counseling is highly recommended, especially when debt feels overwhelming," says Tayri Martinez-Orza, financial wellness expert and quality assurance expert at GreenPath Financial Wellness, a nonprofit financial counseling service. "It provides a fresh perspective and support by reviewing all of their debts — as well as their income and expenses — to help identify the most affordable and realistic repayment plan."
Best of all? It's typically free.
"A counselor gives you an in-depth debt analysis over the phone," says Howard Dvorkin, chairman of Debt.com. "There's no obligation, and you hang up knowing all your options and — most importantly — creating an accurate monthly budget."
Learn more about your credit counseling options here.
Debt settlement
Settlement may also be an option. This is when your debt relief company negotiates with your creditor (in this case, usually the hospital or doctor) to settle your debt for less than what you owe. You'll still need to make a payment, but it can often be significantly less than what you owe.
Settlement is more likely to be successful if you owe a large amount and can prove you have a financial hardship. In this case, it would benefit the creditor more to get some money from your account rather than none at all.
"Debt settlement is a viable option for individuals with unsecured debt exceeding $7,500, — including medical debt or medical debt placed on a credit card," says Natalia Brown, chief compliance officer at National Debt Relief.
Debt Management Plan (DMP)
Debt management plans could be an option, too, especially if medical debts aren't the only debts you're dealing with.
With a DMP, your debt relief provider handles repayment of all your debts on your behalf. You only make one flat payment to them each month, and they focus on putting those funds toward paying down your debts most efficiently.
Explore other strategies
Beyond debt relief, other strategies can help you tackle medical debt, too, experts say. First, you can negotiate.
"Your best option is to simply ask to pay less," Dvorkin says. "It sounds silly, but sometimes you shave dollars off your bill just by calling your healthcare provider and calmly explaining you can't afford to pay everything you owe right now. Sometimes, they'll ask what you can afford, so have a number in mind."
You can also ask about hardship options, financial assistance, or in-house payment plans, which could reduce your costs or help you spread them out over a longer period of time.
"Many hospitals offer financial assistance to help people burdened with medical care," Lambridis says. "Check to see if you meet their requirements to qualify. Even if you don't, your hospital may be able to put you on a more convenient payment plan."
Finally, always double-check your bills. Medical coding errors are common, and depending on your insurance coverage, they could cost you quite a bit.
"After receiving your bill, check to see if it's accurate," Lambridis says. "Look for overcharges, duplicate billing, or charges on services that you didn't receive. Medical bills can be difficult to understand. If you find yourself confused, contact your hospital's billing office."
You can also speak to a medical billing advocate. They can help you decipher medical bills and ensure your charges match the services you actually received — and that your insurance was correctly applied to those charges.
Don't use credit cards or loans (and don't wait)
Whatever you do, try to avoid using credit cards or loans to pay off medical debt. Thanks to recent credit reporting changes, failing to repay medical bills should not have an adverse effect on your credit — but not paying credit cards or loans will.
Additionally, medical providers are typically slower to send debts to collections, as it takes a while for billing and insurance payments to be sorted out. This could give you more time to pay off your bills, especially with a payment plan.
Finally, credit cards and loans can come with high rates. The current average rate on a credit card is over 21%.
"Placing medical debt on credit cards can be less effective, especially in a high-interest environment," Brown says. "Doing this often leads to even more expensive balances since interest can accrue on credit cards if the full balance isn't paid monthly."