How to handle unexpected medical bills

It can start with a sudden illness, an accident, or a test that turns into more tests. Before you know it, you’re staring at a medical bill you never anticipated.

Unexpected medical expenses can feel overwhelming (especially when they hit your budget all at once). But take a deep breath. There are smart, practical ways to handle medical costs without putting your entire financial life on hold.

First Things First: Don’t Panic (and Don’t Ignore the Bill)

When a surprise medical bill shows up, it’s tempting to shove it in a drawer and deal with it later. However, ignoring it can lead to late fees, collections, and damage to your credit. Here's what you should do instead:

•    Open every bill and explanation of benefits (EOB)
•    Check for errors (they happen more often than you think)
•    Make a list of who you owe and how much

Knowledge is power, especially when it comes to medical debt.

Ask Questions (Yes, You’re Allowed To!)

When it comes to medical bills, you have more leverage than you might realize. Call the provider’s billing office and ask:

•    Is this bill correct?
•    Are there discounts for paying cash or paying promptly?
•    Can my bill be reduced or adjusted?
•    Do you offer payment plans?

Many hospitals and providers in South Carolina offer interest-free payment plans or financial assistance programs, but they usually don’t advertise them so it's smart to ask.

Don’t Put Everything on a Credit Card (If You Can Avoid It)

Reaching for a credit card may feel like the quickest solution, but high interest rates can turn a medical bill into a long-term financial burden. Before charging it:

•    Compare interest rates
•    Ask about payment plans first
•    Consider possible lower-interest options at SAFE

Medical expenses are stressful enough. You don’t need high compounding interest adding to the pressure.

Tap Into Emergency Savings (If You Have It)

This is exactly what an emergency fund is for. If you have some savings set aside:

•    Use it strategically
•    Pay down the highest-stress or highest-risk bills first
•    Leave yourself a small cushion if possible

If you don’t have an emergency fund yet, don’t beat yourself up. Unexpected medical costs are often the reason people start one.

Explore Financial Tools Designed to Help

SAFE has many options that may help at times like this, including:

•    Small personal loans with lower interest rates
•    Skip a loan payment for your existing qualifying loans
•    Financial counseling and budgeting support

The goal is to help you manage the bill and recover financially without long-term damage.

Protect Your Credit While You Heal

Medical bills don’t just affect your health, they can impact your credit, too. A few smart moves to consider are:

•    Communicate with providers before bills go to collections
•    Set up payment plans to show good faith
•    Keep records of every conversation and agreement

Taking action early can make a big difference down the road.

Looking Ahead: Prepare for the “What If”

Once the dust settles, it’s a good time to prepare for the next unexpected expense because well...life happens. Next, you should start looking into:

•    Building or rebuilding an emergency fund
•    Reviewing your insurance coverage
•    Setting small, achievable savings goals

You don’t need to be perfect—just prepared. Unexpected medical expenses are stressful, emotional, and often unavoidable. But with the right approach, you can handle them without sacrificing your financial stability. If you’re facing medical bills and aren’t sure where to turn, SAFE is here to help you explore options, understand your finances, and move forward with confidence.

Because your focus should be on feeling better—not worrying about the bills!