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Reasons to avoid using credit cards for medical debt

Ohio residents may have noticed that the household income in the United States has risen by around 30% over the last 10 years. This is a good thing for many families because it affords them space in their budget to save money. At the same time, the costs of medical expenses have risen by 33%. Medical expenses have caused some households to take on debt, including credit card debt.

Putting medical debt on a credit card could mean paying high interest rates. Families can find themselves so far into debt that they do not have what it takes to even keep up with the interest payments. Thankfully, there are some things that people can do to keep medical debt off their credit card.

One step is asking the health care provider if there is an interest-free payment plan available. Many doctors and hospitals readily offer their patients payment plans that do not have fees or interest. There's a difference between making this arrangement with a medical facility and taking on a medical credit card. With a medical credit card, the credit card company pays the medical provider, and then the person pays the credit card back.

Many of these cards promise one year with no interest. If a person is not able to pay the full balance back within the year, they might get hit with interest retroactively. Credit cards should be the last resort for paying debt. They should be seen as a short-term financing option.

Medical debt is one of the primary reasons why people file for bankruptcy. When a person gets injured and they are unable to work, they take out a loan or use their credit card to cover the medical expenses and may find themselves unable to catch up. Bankruptcy is a complicated procedure that has a number of laws a person needs to thoroughly understand. A bankruptcy attorney may help their client see what bankruptcy can do for them and help them determine if it is the right procedure to help them with their debt.

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