Medical debt results in stress and financial problems

On Behalf of | Apr 2, 2020 | Chapter 13 Bankruptcy |

Medical debt can result in bankruptcy even if you have a job and a robust health insurance policy. A study from Salary Finance found that 28% of people in North Carolina and throughout America owe $10,000 or more in medical bills.

Health care costs have gone up since 2018

According to data from the Consumer Price Index, medical costs increased by 4.6% between 2018 and 2019. That was the largest annual increase since 2007, and Americans are currently paying twice what they were in 1984 for out-of-pocket medical expenses.

The cost of care can dissuade people from accessing it

Of those who responded to the Salary Finance survey, 45% said that they stress about their current bills or how much it would cost to seek care. In many cases, individuals will go through their savings or borrow money from family members to pay down their medical debts. In some cases, individuals said that they were the ones who helped family members pay medical bills. The assistance may have been necessary in spite of the fact that those relatives had health insurance policies of their own.

Other costs are going up as well

Health insurance and medical care costs are generally increasing faster than wages for many in the United States. Furthermore, you may be paying more for housing or trying to keep up with your student loan payments. This can make it harder to pay insurance premiums or other medical expenses that you may accrue. According to the Salary Finance survey, 54% of respondents said that they had defaulted on a medical debt at some point in the past.

If you are struggling to keep up with medical or other bills, it might be a good idea to consider filing for bankruptcy. Filing for bankruptcy may put an end to creditor phone calls or other efforts to contact you. An attorney may explain the process of filing as well as other potential benefits of doing so.