Ask HTM - Investing in Real Estate with Only $5, Tapping a 401k to Pay Off Debt, & A Currency Exchange Frugal or Cheap #586

Medical Debt

Medical debt is a significant issue affecting millions of Americans, often leading to financial hardship and even bankruptcy. Matt Altmix and Joel Larsgaard emphasize the importance of understanding financial assistance programs offered by hospitals, which can significantly reduce or even eliminate medical bills based on income and household size 1. They suggest advocating for oneself and even considering legal action if the medical bills are excessively high 1.

You might be surprised at the flexibility that billing and collections has when it comes to you kind of stepping up the rhetoric.

--- Joel Larsgaard

Additionally, they recommend contacting patient advocates who can help navigate these financial assistance programs and potentially have bills waived 2.

   

401k for Debt

The hosts caution against using retirement savings to pay off medical debt, highlighting the financial pitfalls of such a decision. Matt Altmix explains that withdrawing from a 401k can incur taxes and penalties, and it depletes future retirement funds 3. Instead, they suggest exploring other options like financial assistance programs and patient advocacy 3.

You're creating a tax problem and a future you problem.

--- Joel Larsgaard

They also discuss the importance of rolling over old 401ks to avoid losing track of retirement funds and to benefit from better investment options 4.