Major Causes of Overwhelming Debt: Generation X Struggles with Medical Bills

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  2. Major Causes of Overwhelming Debt: Generation X Struggles with Medical Bills
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Many people assume that the baby boomer generation and the “silent generation” (currently 60+) are the most likely to have excessive or past-due medical debt. However, this is not the case. Recent studies have indicated that while approximately 1 in 5 adult Americans have past-due medical bills, the number increases to 1 in 4 if the pool of adult Americans is limited to those under age 65.

Which Generation Is Most Likely to Have Past-Due Medical Debt?

  • Approximately 25% of Millenials and gen Xers (between 18-50) have past-due medical debt.
  • Approximately 20% of baby boomers (age 51 to 64) have past-due medical debt.
  • Approximately 10% of people over 65 have past-due medical debt.

Experts suspect health insurance coverage is a crucial driving factor in these telling numbers. The elderly generation is more likely to have more protection against medical debt due partly to the broad reach of Medicare as currently designed. In a similar scenario, baby boomers enjoy lower insurance rates than young adults, which likely contributes to their lower rates of past-due medical debt.

Potential Consequences of Past Due Medical Debt:

  • Lowering your credit score
  • Negatively affecting future access to credit
  • Increasing the price of credit

Is Past-Due Medical Debt Harmful to Young Adults?

While some dismiss the “consequences” as more beneficial than harmful, they limit a person’s ability to create the potential for improved financial stability and increased wealth by putting significant obstacles in the way of mortgages, loans for small business startups or operations, etc. Additionally, credit scores and credit report information may be used by employers determining job eligibility, insurance companies calculating premiums, and landlords considering rental applications.

Discharging Past-Due Medical Debt Through Bankruptcy:

Bankruptcy is designed to offer relief from many types of debt, but medical debt is one of the most common types of significant debt consumers seek to discharge. Past-due medical debt is one of the most common reasons Americans fall significantly behind on their bills, end up buried in debt, and face chronic financial struggle.

If you struggle financially and don’t know how to pay your past-due medical debt, consider speaking with Ken Rannick, bankruptcy attorney. Most bankruptcy offices in the Chattanooga area don’t have a single Consumer Bankruptcy Specialist on staff. Ken Rannick is recognized as a Board Certified (Senior Specialist) in Consumer Bankruptcy Law by the American Board of Certification. In addition, he is recognized and inducted as a “Superlawyer” by his fellow lawyers, which is awarded to less than 2% of all lawyers in his field. You are in good hands with Kenneth C. Rannick P.C. Get in touch with Kenneth C. Rannick P.C., Tennessee, and Georgia bankruptcy attorney as soon as possible.

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