Recent studies of bankruptcy petitioners have shown that medical expenses and associated lost income were a major factor in their financial problems, and consumer credit information from the federal government has confirmed that medical expenses are a primary reason for consumer borrowing, so it should come as no surprise that those without medical insurance and those who have faced major medical expenses over the past few years tend to have higher credit card debt.
A study just released by Demos reveals some interesting numbers:
- Low and middle income households with a major medical expense in the past three years carry an average of 45.9 percent more credit card debt than similarly situated households without a recent major medical expense.
- The average credit card debt for families without medical insurance is 32.2% higher than that of families with medical insurance.
Although the evidence has been clear from the beginning that the vast majority of bankruptcy filings were triggered by unforeseen trauma like job loss, serious illness, uninsured medical expenses, divorce, and death in the family, this connection between medical bills and consumer debt puts a new perspective on even those bankruptcy petitioners who list primarily credit card debt. Credit card debt incurred to pay medical expenses hardly correlates with the picture of the "deadbeat" bankruptcy petitioner "running up" credit card bills irresponsibly and then shirking his responsibility.
Tags: bankruptcy, chapter 7 bankruptcy, consumer debt, credit card debt, medical bankruptcy, medical bills, medical bills and bankruptcy, medical debt
Posted in Economic News: How Are We Doing? | Comments Off