Debt is burdensome but not worth desperation

I suffered a pulmonary embolism and almost died twice. My medical bills have not been paid as I am barely able to save any kind of money to even make one payment.

Any advice or help that you can give me will be appreciated as I am desperate now.

Answer: You've forgotten something important. Debt is just debt.

You're also not alone. Millions of people in the U.S. lack health insurance. Millions more are underinsured, facing co-payments or coverage limits that leave them exposed to catastrophic debt. One accident or illness can leave the uninsured and underinsured with hundreds of thousands of dollars in medical bills.

If your income is low and you have few assets you may qualify for charity care from your hospital, which could reduce or even eliminate your bill in some circumstances. Contact the hospital that treated you and ask to speak to a financial counselor.

If you don't qualify for that help, you may need to consider bankruptcy. The U.S. bankruptcy system exists so people don't have to face a lifetime of unpayable debts.

Most people who file for bankruptcy qualify for Chapter 7 liquidation, which erases medical and credit card debt in a matter of months.

If you're required to file Chapter 13 -- because your income is high or you want to protect certain assets that could otherwise be taken by creditors -- you would be put on a five-year repayment plan which, if you successfully complete, would allow you to erase most of the rest of your unsecured debt.

Make an appointment with an experienced bankruptcy attorney to discuss your options. An initial consultation is typically free.

At the mercy of credit card issuer

Dear Liz: I have a credit card with a large balance but a very low interest rate that's supposed to last until this debt is paid off.

I am diligently working on that, but I'm concerned that the credit card company may decide to substantially raise my interest rate, even if I make on-time payments.

I heard there was a way to prevent that by closing the account. Does this really work?

I am not interested in getting additional credit from them but rather just freezing the current interest rate on the current balance.