Falling behind on payments for certain types of debt can lead to a number of unpleasant consequences. From wage garnishment to constant phone calls from debt collectors, owing a significant amount of debt can be stressful and overwhelming. One of the most common types of debts is medical debt. Statistics indicate that around 32% of American workers have this type of debt and approximately half have defaulted on it.
Of those who have outstanding medical debt, approximately 28% have more than $10,000 in health care bills. This is much more than many in Tennessee can afford to pay, even when making payments each month. It is easy to see how these balances can become unmanageable, especially considering that other types of debt and financial obligations usually have to be paid in addition to these balances.
Having health insurance does not guarantee immunity from medical debt. In fact, there are many health care expenses that are not covered by insurance. Rising deductibles, surprise bills and confusion over insurance coverage affects just about everyone, even those with high incomes. Estimates suggest Americans spend around $5,000 out-of-pocket on medical expenses each year.
Medical debt can wipe out savings and cause various financial problems for a Tennessee consumer. In some cases, the most practical way to deal with this type of debt is to file for bankruptcy. While this may not be the first choice, it can offer a way to discharge certain types of unsecured balances, including medical bills, and create a path to regain financial stability.