Medical debt: Even a small balance can lead to financial struggle
The fear of the costs associated with an unexpected medical emergency is a concern for many individuals in Tennessee. However, while dealing with high amounts of debt can be a daunting process, even smaller amounts of medical debt can create an unfortunate situation. Recent studies suggest that when it comes to unpaid medical bills, individuals may receive collection notices on amounts as little as $200.
Recent studies indicate that more than half of the past due medical accounts that were sent to collections over a recent one year period showed balances of under $600. While creditors may wait anywhere from six to 12 months to send an account to a collection agency, once this occurs, the impact it could have on a person’s credit score can be devastating. Even with concerning accounts with lesser balances, a similar situation can prompt frequent collection calls that can add stress to an already intimidating scenario.
While similar issues can impact a person of any age, studies also indicate that individuals under the age of 30 are three times more likely to experience a similar outcome. According to studies, younger individuals may have less of an ability to build up sufficient savings to cover an unexpected medical emergency. However, even those who have a financial safety net in place could struggle under the weight of extensive medical bills.
Substantial amounts of medical debt can have a disastrous impact on a person’s finances. Those who encounter dire financial circumstances due to similar forms of debt may wish to know more about the options for relief, and they could choose to speak with an attorney for guidance. An attorney an examine the financial circumstances of a client in Tennessee and assist him or her in forming a plan to reduce or eliminate debts through the necessary channels.