We’ve heard a lot of bluster recently with regard to consumers and the economy. With bankruptcies and foreclosures mounting, many are blaming problems on excessive credit card use. And, while excessive credit card debt doubtless plays its role in bankruptcies and other issues, it is worth noting that most bankruptcies are, in fact, caused by medical bills.
Even for people with health insurance, medical bills can become costly and add up. Health insurance does not actually provide much protection against major illnesses or other health catastrophes. By the time you pay your deductible and 20% of the bill, things can get expensive. My father had a mild heart episode, and that cost $30,000. His part was $6,000 — after meeting the deductible. It has taken my parents 6 months to pay off their bills.
And many people have larger problems. What if you have an extended hospital stay, or end up with cancer? Even with health insurance, your portion could financially devastate you. In the end, it helps to be aware of the facts behind crushing debt. Sure, credit card debt contributes; but a far bigger problem is that of medical bills and debt.
