I have always prided myself for having perfect credit, but the recent downturn in the economy and unexpected medical expenses have no changed that. I don't want to file bankruptcy, but am way behind on payments. What are my options?

For medical bills, you can make small payments to the hospital every month and as long as you’re paying off the loan, they can’t write it off as un upaid bill. So pay them $15 a month and use the extra $ to pay off your credit cards.

Call and negotiate. Your creditors would rather get some money from you, if they negotiate, than get no money from you, if you stop paying and file for bankruptcy.

This is why I love being British and having a socialist National Health Service. I pay about a penny in every pound I earn, over a limit, as does my employer. And for that not even really noticeable contribution, I and every other citizen is entitled to free health care!

Not really an answer I know but more a gloat.

Surely your country has some kind of social services that can help you in this position though? And why is you insurance not covering it? I work in financial services and trust me NEVER TAKE THE FIRST ANSWER THEY GIVE. Go back and say I’ve paid my premiums now cough up, threaten them that if they don’t you have already taken advice (via legal aid) and they will just pay up.

If you’re down to your last resort, you might give this a shot:

http://thecrowhouse.com/Documents/mary-book.pdf
http://www.youtube.com/watch?v=Jtp6n6a1Oxw

Also, in the future, don’t spend on frivolous items like, say, an iPhone, and save for a rainy day.

^how smarming^

If you absolutely cannot pay your bills, the hospital bills are written off as a bad debt and the government reimburses the hospitals for a portion of these bad debts. This might help you focus on your house payments.

Call everyone you owe money to, explain your situation, and ask what kind of arrangements you can make. Be clear that you want to pay your debts, but are unable to do so on the current terms. Good luck!