Mortgage Killer Accelerator

Strategy 96 of 107 · new for the five-year plan

Apply for hospital financial assistance on medical bills

Depends on people or program rulesFrom a lower cost of the same debtFive-year size: helps at the margin

What it is

Nonprofit hospitals must have a written financial assistance policy; ask for it and apply, even after the bill arrives.

Steps

  1. Nonprofit hospitals must have a written financial assistance policy; ask for it and apply, even after the bill arrives.
  2. Bills can be reduced or erased based on income.
  3. End or shrink the payment plan, and send the difference to principal.

Repeat: Each bill.

Measure: Monthly payment freed.

Try it in the calculator Enter its amount in "Monthly non-income amount to principal". Add a payoff goal of 5 years to see what is still needed.

Risks

  • Rules and income limits differ by hospital.
  • For-profit hospitals are not required to offer it.

Who it fits

Average household, Single, No high school diploma, No college degree, College students, Grandmas and grandpas (62 and over), Married couples, Newlyweds

Needs

Paying hospital bills

How predictable

Depends on people or program rules (tenants, family, IRS records, lenders)

A worked example (hypothetical, not guaranteed)

Picture a hypothetical household (average household). They owe $300,000 at 6.5% with 30 years left. The required payment is $1,896 a month, and that payment, which comes from income, never changes in this example.

They follow the steps: nonprofit hospitals must have a written financial assistance policy; ask for it and apply, even after the bill arrives.

Suppose it brings $150 a month on principal from this strategy, not from the paycheck. The loan would be paid off in 24 years 5 months instead of 30 years, saving about $83,919 in interest. To finish in five years, they would still need about $3,824 a month more from other strategies. That is why the five-year sequences stack several at once.

The amount above is chosen only to show the arithmetic. It is not an estimate of what this strategy will produce for anyone. Put real numbers from the fact finder into the calculator.

Sources and more information

Where to get help

Related strategies

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