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Even young adults are struggling under medical debt

It is a belief among some in Tennessee that many of those who file for bankruptcy due to medical debt are older people. After all, younger people do not always face the medical catastrophes, such as heart attacks or cancer, that older people may experience. However, a recent study published in the journal, Health Affairs, reported that the opposite may be true.

According to the study, which examined 4 million credit records, one in six people in the United States has delinquent medical bills that show up on their credit report. This medical debt is not always high -- 53% of those studied had medical debt that was under $600. However, when you are living paycheck-to-paycheck, even hundreds to dollars is enough to catapult you into a financial crisis.

What may be more surprising is that of the individuals studied who had one or more medical bills in collections, 11% were age 27. This is the greatest share of individuals of a specific age that were studied. It is important to note that after age 26, a child can no longer be on their parent's health care policy per the Affordable Care Act.

Approximately 30% of those studied between the ages of 27 to 45 reported that they did not have a health insurance policy. Thus, the study found that at those ages medical debt began to go down.

Medical debt can affect people of any age and can often lead to serious financial struggles. People may have to put off paying medical bills, leading to collection actions. When this happens, filing for Chapter 7 or Chapter 13 bankruptcy may be worth considering. Bankruptcy is a debt relief option that allows a person to liquidate their assets or establish a repayment plan to pay off their creditors and have many of their debts subsequently discharged. This can give people the fresh financial start they need to move forward.

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Mark T. Young & Associates
2895 Northpoint Blvd.
Hixson, TN 37343

Toll Free: 888-376-0282
Phone: 423-933-1606
Fax: 423-877-0363
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