If you are overwhelmed with medical expenses, you are not alone. I read an article recently where it stated that medical bills and accounts now represent over 50% of debt classified as being in collections status. That’s huge! According to the Federal Reserve, the government agency that keeps up with these things about 1 in 6 credit reports have medical debt collection accounts listed. About 40% of these credit reports were also experiencing a lower credit score and the majority of these debts were listed as still unpaid.
There are two major issues. One – people are struggling with the amount of medical debt that they are in – there isn’t a payment plan out there that would be feasible for them to attempt. And two – people are struggling with somewhat manageable medical debt but the medical collections community seems to have absolutely NO desire to work with them on any type of reasonable payment plan.
I met with a couple the other day that make good money and had health insurance. The husband recently had to undergo surgery and the bills were steadily coming in from the doctors, labs, and the hospital – but overall it wasn’t too bad. The problem is that they all wanted their money immediately. Pay or be sent to collections in 30 days. Pay the debt collector or be sued. Be sued and be garnished or have your bank account frozen.