Medical debt troubles have long plagued our society as the costs of healthcare in the United States is much higher than that of other nations. Even those who have insurance coverage have found themselves in debt over medical bills when serious and unforeseen medical conditions arise. Although medical debt is one of the easier types of debt to resolve, there are still some issues that should be taken into consideration.
Costs Of Healthcare
One of the biggest issues people face with medical debt is unsuspected credit damage. Since these debts are not tied to a line of credit or credit account, many people assume that defaulting on them will not affect their credit. This couldn’t be more wrong. In fact, medical debts are some of the quickest debts to enter collections and credit reporting problems. Since providers have little legal recourse to collect their money they often push late accounts into collections quickly, sometimes after just 30 days.
Although medical debts are one of the easiest debts to discharge in bankruptcy, many people may not qualify based on their medical debt alone. In such circumstances, people are often left to pursue debt negotiations or settlement options in order to resolve their troubles. While neither of these are inherently bad options for resolving debts, medical debts often go hand in hand with other situational problems. Suffering a serious medical illness that lead to a high debt burden is likely to have caused problems with employment or defaulting on other bills. Things can quickly snowball for medical debtors and getting a grasp on the situation takes a lot of time and effort by way to negotiating with creditors.