More and more families in Pennsylvania are finding themselves carrying heavy medical debts. The majority of the time this is very stressful, but it is especially stressful when the debts go unpaid due to the inability to work. Since medical facilities cannot run efficiently without funds, these debts often make their way to collections quickly, which can impact your credit report in a negative way.
Having health insurance is no guarantee that you will not be left with unmanageable debt following a serious and unexpected medical condition. Folks in Allegheny County and across the United States are finding that health insurance companies have increased deductibles at a pace that is at least six times faster than the income people are earning.
Medical debt is one of the most common accrued in the state of Pennsylvania, as well as the entire country. It is also perhaps the most stressful, since medical debt is rarely taken on by choice and is instead accrued thanks to an unexpected medical condition. People from all walks of life fall into medical debt, but the poor and uninsured are the most vulnerable. The costs of medical care are only rising, with more people taking on large debts each day.
An individual stricken with an unexpected medical condition could easily end up with unmanageable debt. This is particularly true when the illness leaves the person unable to work.
Almost half of all accounts that go into collections are medical debt. This makes medical debt the leading reason why one out of every six Americans has a medical debt in collections on their credit report. Having a debt listed as in collection can reduce a person's credit score by as many as 100 points. Those who have higher credit scores are more likely to suffer compared to those who have a lower credit score.
Pennsylvania residents who are faced with overwhelming consumer or medical debt may sometimes consider filing for bankruptcy as a method of obtaining some relief from these obligations. The ultimate goal is to obtain a discharge from the bankruptcy court, as the effect of a discharge releases the filer from personal liability from some of these debts. The affected creditors are also prohibited from further communications with the debtor and from instituting or continuing any form of collection activity with respect to those obligations.
When debt seems to linger like an unshakeable cloud, a consumer in Pennsylvania may begin to feel desperate for help. Personal bankruptcy protection is available for those who wish to eliminate unsecured debts that have simply become unmanageable. However, it’s worth noting that filing for bankruptcy may have an impact on a friend or family member who cosigned a loan for a person who subsequently files for bankruptcy.
Debt is a four-letter word that sparks a range of emotions in people, including frustration and even anger or desperation. This is because consumers in Pennsylvania and other parts of the country often struggle to get rid of their extensive debt and are eager to obtain some form of debt relief. A particular segment of the population that is particularly struggling with debt includes those who attended for-profit postsecondary institutions and took out large loans to train at these schools.
People sometimes have a choice in whether they will get into debt or not: for instance, they choose to buy a house, they choose to go to college and they choose to purchase a car. However, most people don’t choose medical debt. Rather, they often have no choice but to get into debt to cover medical expenses associated with an unanticipated medical condition or emergency. Like other types of debt, medical debt in Pennsylvania can wear on a person to the point that he or she may seek debt relief in order to stay financially afloat and reclaim a sense of peace.
People in Pennsylvania generally have some control over their lives: For instance, they can choose who to marry, where to live and what career to get. However, one thing a person can’t control is whether he or she falls ill. Learning that one has cancer or other serious conditions can be upsetting, and finding out how much medical debt one has to accrue in order to get the necessary treatments can be even more unsettling. Unfortunately, many more families today than ever before are unable to pay their medical bills upfront due to health plans with high deductibles; in their cases, bankruptcy might prove to be an advantageous option.