Did you know that nearly 1-in-5 households in the United States are burdened with overdue medical debt? It’s a staggering statistic affecting millions of families, but there’s hope. At Starting Now, we believe it’s time to take action and empower ourselves against this financial challenge.
The Impact of Medical Debt
Medical debt is the most common reason debt collectors contact individuals, causing stress and potential negative impacts on credit records. However, there are steps you can take to protect your credit and regain control of your financial well-being.
Legislative Support Against Medical Debt
In response to the medical debt crisis, Congress and federal agencies have enacted the No Surprises Act to shield Americans from unexpected medical bills, particularly from emergency services by out-of-network providers. Additionally, the Consumer Financial Protection Bureau (CFPB) has mandated that debt collectors and credit reporting companies cannot collect, furnish, or report invalid medical debt.
Changes by Credit Reporting Agencies
The three major credit reporting companies—Equifax, Experian, and TransUnion—have implemented significant changes to support individuals burdened by this type of debt:
- Removal of all paid medical debts from consumer credit reports.
- Elimination of debts less than a year old.
- Exclusion of medical collections under $500.
These changes mean a significant portion of medical debt will be wiped clean from credit reports.
Steps to Take Control of Your Medical Debt
1. Check Your Credit Report
Take advantage of the recent changes by the credit reporting companies. Access your credit reports for free once a week through AnnualCreditReport.com. Look for outstanding medical bills and ensure that medical collections under $500, paid medical collections, or collections less than a year old are no longer on your report. Also, review for any other inaccuracies.
2. Dispute and Correct Errors
If you find any errors or medical collections under $500, paid collections, or collections less than a year old on your report, dispute the information with the credit reporting company. Don’t let incorrect information affect your credit score!
3. Utilize Extended Dispute Time
The credit reporting companies have extended the time to dispute, negotiate, or pay off outstanding bills before they can be reported. This gives you more time to find solutions and protect your credit.
4. Explore Financial Assistance Programs
If you’re struggling to pay your medical bills, you may qualify for financial assistance programs, often referred to as “charity care.” Explore these options to alleviate the burden and regain control of your finances.
Don’t Let Medical Debt Hold You Back
Medical debt shouldn’t prevent you from achieving your financial goals. Take charge of your credit to ensure your access to employment and housing remains unaffected.
If you have any questions or need further guidance, reach out to us at Starting Now Corporation. We’re here to support you every step of the way.
Take control today and pave the way for a brighter financial future!
