Reducing the stress of medical debt

On Behalf of | Apr 21, 2022 | Bankruptcy |

Vice President Kamala Harris announced that the federal government is making more strides toward assisting individuals who are struggling with medical debt. Harris says she understands that some families are scared to bring their children and other loved ones in for treatment because of how expensive many medical services are. If you’re a New Jersey resident, here are some things you should know about how financial solutions can help reduce medical debt.

More on the government’s plans

The efforts by the White House administration could help to reduce the stress associated with medical debt by offering a variety of payment options. However, these efforts do little to ensure that Americans don’t acquire overwhelming medical debt in the first place. Nonprofit organizations such as the National Consumer Law Center are working to reduce aggressive debt collection methods, and some consumers are learning that bankruptcy could help them manage expensive hospital bills.

How the new governmental rules work

The new rules regarding medical debt will stop creditors from reporting medical debt so consistently. The three main credit bureaus, Experian, Equifax and TransUnion, are even working to make sure that medical debts are not reported as often on credit reports. This change can help consumers maintain higher credit scores to take care of other financial obligations. Not reporting the medical debt as a way to reduce the penalties of this type of debt can even help some individuals and families avoid bankruptcy.

The government is also in talks regarding debt repayment or forgiveness programs for medical debt. This allows people to pay their debts according to a timeframe that works for them. Repayment or forgiveness plans can help keep a consumer’s credit score intact and reduce the stress of trying to come up with large sums of money in a short amount of time.