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Consumer Debt Issues: Medical Costs Increase by 34 Percent in Last Decade

consumer debt issues
  • May 25 2018

So many different expenses contribute to household debt in the US, with mortgage costs and student loan debts at the top, and then all the other usual payments falling into place for items like cars and credit cards. While medical debt may not even make it into the top five payments listed in recent statistics for 2017, it can still be an overwhelming issue for hundreds of thousands of consumers in the US; in fact, growing trends have shown a combination of medical debt and credit card debt as so many consumers are forced to charge all sorts of payments related to healthcare, such as co-pays, out-of-pocket procedures, hospital bills, and prescription medicine.

Medical bills have been the primary cause for debtors filing for Chapter 7 bankruptcy for years, and such expenses have continued to rise by 34 percent over the last ten years. And not only are consumers in the US being hounded to pay what are often astronomical medical bills, they may be faced with challenging health insurance payments and prescriptions that are barely affordable. Debt collections activities can be harsh—putting even more pressure on those who may be extremely ill, recuperating from a major sickness, or trying to adjust to life after a debilitating accident. Such issues also cause a vicious cycle when employment and income are affected, making it hard to pay doctors and hospitals, much less all the balances accruing on credit cards.

According to recent data released by NerdWallet, 27 million consumers in the US are relying on credit cards to pay for medical bills. Along with that, they end up paying around $471 in average interest, totaling a cumulative $12 billion. Other bills for essential needs have been rising too, like food cost at 22 percent, another typical bill not keeping up with rising costs for most people in the US.

For many financial duress leads to delinquencies and then sometimes collections lawsuits, as well as court or default judgments. And while massive student loans may be the reason borrowers are driven into bankruptcy, they are extremely difficult to see discharged there without the help of a skilled student loan trial lawyer.

Are you in danger of defaulting on your student loan or are you experiencing difficulties with your student loan service company? Contact Fitzgerald & Campbell, APLC now so one of our experienced student loan debt attorneys can review your case and discuss all the available options with you. Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include student loan issues, bankruptcy and other debt management processes. We are here to help! Call us today for a free consultation at (855) 709-5788 or email us at info@debtorprotectors.com.

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Posted in: Medical debt