As discussed in a recent article from Cleveland.com, the Consumer Financial Protection Bureau released a report analyzing various kinds of debt. What types of debt show up most frequently on people’s credit reports?
As it turns out, unpaid medical bills top the list, accounting for roughly 52% of the debts reported to credit bureaus.
What does this mean?
First off, it’s important to understand that just because medical bills are the most frequent kind of debt showing up on credit reports, it doesn’t mean that they’re always the largest debt in any given individual’s financial life. You could have an unpaid medical bill of several hundred dollars, while at the same time holding a general credit card debt of several thousand dollars encompassing many other bills.
That said, healthcare and medical services are generally expensive and often do put a drain on people’s finances, especially in the worst situations involving hospital stays and major surgeries.
When dealing with the healthcare industry, you need to push as much as possible for transparency to understand why you’re getting billed a certain amount. The Cleveland.com article offers additional advice, including not paying your medical bills with a credit card if possible; the reasoning is that if you pay the medical bill with your credit card, it might get classified on your credit report as part of your general credit card debt, which could impact your credit score more strongly.
If you live in Ohio and are struggling to manage medical debt or any other unpaid bills, be sure to contact an experienced Shelby County, Ohio bankruptcy attorney. Your attorney will help you figure out strategies for coping with mounting debt and possible pressure from creditors and collection agencies.