Many types of debt can leave your finances in tatters, but one of the most common is medical debt. One moment you and your family members are well, and your financial situation is steady, then, out of nothing, something happens that puts you or a loved one in the hospital. Before you know it, you have burned through your savings and amassed a pile of medical bills you cannot possibly afford to pay.
Perhaps surprisingly, it is not those on the lowest incomes who most frequently have medical debt, but those considered to be middle-class. This is despite them typically paying considerable sums for health insurance.
Medical debt is an issue right across society
Figures for 2021 showed 17% of middle-class households had medical debt, compared to 15.3% of lower-income households and 9.8% of higher-income households. The average debt stood at $21,000.
The reason lower-income households were slightly less likely to have medical debt is that they were more likely to avoid getting the treatment in the first place due to fear of the cost. However, the report also found that it was harder for them to pay the debt than middle-class households because their income was relatively lower.
If medical debt was the only debt people had, they might have a greater chance of making the payments. Yet, many people already have other debts, even if it is just their mortgage. Even if they don’t the cost of medical treatment can be so high that paying it off is impossible.
Bankruptcy offers a lifeline to families and individuals who often had little choice but to incur debt they could not afford to preserve their health. Learning more is a wise move if you are in this situation.
