Medical debt is a growing problem among younger people
On Behalf of O’Brien Law Firm, LLC
Posted on: April 10, 2018
Injuries and illnesses too often impose financial hardship on people in Mississippi. In addition to the physical pain, medical bills quickly absorb savings and force people to use their credit cards. The Commonwealth Fund reported that about one-third of consumers used credit cards for medical bills in 2014. For 44 percent of these people, that act produced a negative result on their credit scores. Younger people in the Millennial generation have begun to feel the pinch as well. A survey of Millennials in 2016 found that 74 percent of respondents had unpaid medical bills.
Between 2008 and 2018, the percentage of medical debts among young people that went to collections rose sharply from 10 percent to 30 percent. Possessing health insurance does not insulate people from medical bills. A study sponsored by the Kaiser Family Foundation revealed that 20 percent of people with insurance still struggled to pay for health care.
Bankruptcy represents one approach to managing debts that become insurmountable. Another strategy for controlling health care costs involves debtors negotiating their bills with hospitals. This effort could result in an arrangement that lets people pay their debts with interest-free installment payments.
When a person wants to know more about debt relief, an attorney could provide helpful insights. For example, one may prevent a home foreclosure by selling the property through a short sale or negotiating a new mortgage with the lender. Other types of creditors might accept a debt management proposal or settlement offer prepared with assistance from an attorney. This strategy might gain someone a lower payment that relieves pressure on the monthly budget. In situations that involve disputed charges, an attorney could take the creditor to court and strive to resolve the debt.