How Georgia Consumers can keep Medical Debt in Check and Avoid the Number One Reason for Filing Bankruptcy

Medical bill and insurance form with calculator

Georgia consumers who are working to keep their finances on track may be surprised to learn that the number one reason for bankruptcy filings has nothing to do with credit card debt. Credit card mismanagement is still a huge problem in the U.S., but medical debt pushes many more consumers into bankruptcy. It’s scary to think about how a major medical incident could cause a lot of unforeseen expenses to pile up, even if you have insurance. However, setting up a strong emergency fund can help Georgia residents keep medical debt in check when they’re faced with a major accident or illness.

Establishing an Emergency Fund is the Best Defense against Medical Debt and the Threat of Bankruptcy

In a New York Times article the author revealed that about 20% of Americans under the age of 65 reported having trouble paying their medical bills over the past year. That’s a pretty good chunk of the population, and this probably makes sense to you if you’ve ever been hospitalized. They’re some wonderful, world-renowned hospitals in Georgia, but they’re not cheap. Just one extended stay, in fact, can set even an insured consumer back thousands of dollars.

No one wants to plan on being injured or sick. Unfortunately, though, it’s hard to make it through life with zero health glitches. Of course, having good medical insurance coverage is the first step toward preparedness, but you shouldn’t stop there. Even the best medical insurance typically won’t cover everything. This is why you need to set aside money to put into savings every month.

Ideally, your emergency fund should be large enough to cover three to six months’ worth of living expenses. That’s a lot of money, but you can build your savings up over time. The most important thing is that you treat your savings like a necessary expense. If you’re not currently putting any of your income aside, rework your budget to include monthly emergency fund deposits.

Why Georgia Consumers should be Aware of Medical Debt Collection Errors

A lot of Georgians are working hard to improve their credit scores right now. If you’re one of them, the last thing you want is a mountain of medical debt that might possibly lead to a bankruptcy filing. A Chapter Seven bankruptcy will stay on your credit report for ten years after it has been discharged. That’s a long time to deal with damaged credit that could keep you from getting good interest rates on loans, a lease on an apartment, or even a new, high-paying job.

This is why you should plan ahead, pay your bills on time, and prevent any debt from going to debt collections. However, mistakes can happen, and consumers are often charged for medical bills that they don’t actually owe. These accounts can go to debt collections if left unpaid, and this is how you get medical debt collection errors on your credit reports. These credit report errors can unnecessarily bring down your credit scores and undo all of the effort you’ve put into improving your credit.

Medical Debt Collection Errors can be disputed and removed, but only if you know that they exist.  The only way to find and dispute inaccuracies on your credit reports is to check your credit reports often. Luckily, the Fair and Accurate Credit Transactions Act (FACT) is a federal statute that entitles you to one free credit report from each of the major credit bureaus every twelve months. You can request credit reports from TransUnion, Equifax, and Experian by visiting www.annualcreditreport.com. See https://youtu.be/tEnHv7wx8K8 for a short video on how to read a credit report.

If you find Medical Debt Collection errors or mistakes of any kind on your credit reports, you can get a FREE credit repair lawyer to get them removed. At Credit Repair Lawyers of America, we work under the Fair Credit Reporting Act (FCRA) to help Georgia consumers get the accurate credit reports they deserve.

The Free and Legal way to Get Better Credit

Don’t let medical debt collections and other errors on your credit reports bring your credit score down. At Credit Repair Lawyers of America, we’ve been cleaning up credit reports for consumers since 2008 for free. How do we do it? All of our fees come from the defendants in cases that are settled. This is why our clients pay nothing for the work we do.

Let’s start the conversation about what we can do for your credit. Set up your free consultation today by calling Attorney Gary Nitzkin at (404)591-6680 or sending him a message through our contact page.