Did you know that the leading cause of bankruptcy in America is medical debt? Unpaid medical bills send your credit score straight down the toilet faster than a long night of drinking at a Mexican restaurant.🚽
But there's a small light at the end of the tunnel.💡 Starting July 1st, the major credit bureaus (Experian, TransUnion, & Equifax) are clearing roughly 70% of medical debt from credit reports. This will hopefully give a much needed boost to credit scores nationwide.
Here's Five Fast Facts on medical debt and the new policy:
1.💸 Collect THIS. Per the new rules, If you paid off your medical bills after they went into collections, you'll no longer see that ding on your credit report.
2. 💲 Collect THAT. Starting in 2023, your credit report won't include medical bills under $500 that are in collections.
3. ⏳📆 Time's On Your Side. The new policy prevents medical debt sent to collections from popping up on your report until a year has passed. The old rule required it to be reported after six months.
4. 🚑 Call the WAMbulance. According to the Consumer Financial Protection Bureau (CFPB), unpaid medical bills make up 58% of debt currently in collections.
5. 👵👧 Talkin' 'Bout My Generation. Results from a recent survey revealed that credit scores from every generation are negatively impacted by medical debt. Millennials are the most affected at 52%.
🔥Bottom line: Americans have had it rough over the last several years, and sky-high hospital bills didn't help. These new policies around medical debt are a great step towards easing the burden of financial hardship, but people are still on the hook for paying what they owe.
Will this new policy help your current financial situation? Let us know by connecting with us on Social Media and be sure to share this newsletter with any friends & coworkers!
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