There are few things more stressful than navigating a health crisis, only to find that your mortgage is starting to rise due to neglect. You’re probably thinking about out-of-pocket maximums, accumulated medical bills, and your own health problems. Many people forget about the debts that will continue to enter their homes. An MIT study even found that people who have been in the hospital for a long time may face debts of up to $6,000, with some even reaching collections before they can deal with them.
Whether you’re dealing with a planned rehab stay or an unexpectedly long hospital stay, take-home bills can’t just stand still while you focus on your recovery. Managing your home loans effectively during this time is important to prevent late fees, service interruptions, and the long-term damage missed payments can cause to your credit score.
That said, you need to have a plan for how you will manage household bills during your long hospital stay. Here are some important things to keep in mind.
Automate Your Important Monthly Obligations
First and foremost, change everything you can. Removing the need for manual intervention when it comes to paying your bills will help you stay on top of things without being there. If you can, try setting up automatic payments for the following:
- Rent/mortgage payments
- Resources
- Insurance premiums
- Loan installments
Doing this will help ensure that your important obligations are met on time, every single month (even if you’re recovering locally).
Before you go to the hospital or rehab, take the time to log into each of your service providers’ portals to turn on automatic payments. This creates a “set it and forget it” system that prevents the risk of forgetting to pay while you are distracted by medical procedures or physical therapy. If the provider does not offer an automatic online payment option, contact your bank to see if you can use their “bill pay” service to arrange recurring check withdrawals or electronic transfers.
Delegate Financial Oversight to a Trusted Person
Sometimes, managing your accounts and your health issues at the same time can feel overwhelming. It’s a good idea to have a trusted family member or friend on standby in case you need extra help.
Before you sit down, sit down with this person to review your list of monthly bills, supplies, and specific deadlines for each bill. You might consider giving them limited access to certain accounts or setting up a joint checking account just for the purpose of managing these recurring household debts while you’re disabled.
Rather than sharing passwords, consider safer options such as providing limited account access where available, using your bank’s bill payment features, or establishing financial power of attorney where appropriate. The Consumer Financial Protection Bureau warns consumers to carefully choose who they trust and understand the different legal tools available before giving financial authority.
But ultimately, having a second set of eyes on your financial dashboard allows someone to alert you to unexpected problems, such as a sudden increase in the utility bill or a suspicious charge, which might otherwise go unnoticed.
Consider an Attorney’s Financial Strength Before an Emergency
If you may not be able to manage your finances while you are in the hospital or hospitalized, consider establishing a strong financial power of attorney before an emergency occurs. This legal document allows a trusted person to handle financial matters on your behalf if you are unable to do so yourself. The CFPB recommends planning ahead so that someone you trust can pay bills, manage accounts, and help avoid unnecessary financial disruptions during periods of incapacity.
Contact Service Providers for Assistance
As soon as you know you will be away for an extended period of time, reach out to service providers and creditors. Most companies will be able to work with you on payments through hardship, deferment, or other flexible payment plans.
For example, you may be able to pause non-essential subscriptions like gym memberships, streaming services, or magazine deliveries to save your money for pressing household bills. If your income has been affected by your hospitalization, ask if the provider can offer you a temporary reduction in rates or a “budget payment” plan that balances your utility costs.
If you have already been hospitalized and are concerned about finances, ask to speak to a hospital social worker or financial advisor. They can connect patients with financial assistance programs, payment specialists, and community resources that can help during recovery.
Don’t Forget About Medical Debts
Ignore the hospital costs themselves. Review the entire Explanation of Benefits (EOB) from your insurance before paying a medical bill, as billing errors, duplicate payments, and insurance processing delays are common. If you can’t pay quickly, ask about financial aid or an interest-free payment plan before turning to credit cards.
Prioritize Your Financial and Debt Goals
If your resources are limited during a long-term stay, you must have a strategy for which debts to prioritize in order to maintain your long-term stability. Start by listing all your debts from the smallest to the largest and identify the “important” payments that could have serious consequences if missed, such as your mortgage or insurance.
If you have extra money, build a small emergency hard drive. Even a limited emergency fund can help cover deductibles, transportation, caregiver meals, parking fees, copays, or other expenses that are often associated with a long hospital stay but not always covered by insurance.
Protect Your Financial Future After Repayment
The stress of a hospital stay or time spent in rehab is enough. You should focus on your recovery, not the accumulated debt at home. To do this successfully, you need to plan everything you can in advance.
Always keep track of any agreements you make with creditors, including the names of the representatives you spoke to and details of any payment arrangements. Even if you feel like work is difficult, taking these small and specific steps will ensure that your health remains focused throughout your stay. You’ve worked hard to build your financial health, and these simple safeguards will ensure that your work is always protected.
Have you ever had to manage your finances while dealing with a health emergency, and do you have a plan in place to help you keep your bills on track? Share your tips in the comments!
What to Read Next
Here’s What You Can Decide About What Happens in Your Home When You Are in a Long-Term Care Facility
The 3 Biggest Mistakes You Can Make in Your Will, According to Estate Planning Experts
Elder Law Attorneys Warn of Estate Planning Mistakes That Start with Medicaid Penalties — Avoid These 5 Mistakes
