Even before the unprecedented events of 2020, tens of thousands of Americans were bogged down with medical debt. Unfortunately, medical debt soared during the COVID-19 pandemic, leaving many people feeling lost and hopeless. With that in mind, the expert team at Resolvly composed this article to help patients navigate burdensome medical debt.
Below, we’ll discuss just how severe the medical debt crisis has become. We’ll also provide insights into ways that you can find solutions so that you can take control of your life and overcome crippling medical debt.
The Crises at Hand
While it is clear that the COVID-19 pandemic created massive amounts of new medical debt, you may not realize just how dire the situation has become. According to NBC News, medical debt among members of a major credit reporting agency grew by $2.8 billion from May of 2020 to March of 2021.
Nearly two million people that previously had no medical debt found themselves owing thousands to providers. This does not count the millions of Americans who had new debt piled on their existing medical bills.
Unfortunately, many people are turning to bankruptcy, as they do not see any other options to get out of their crippling debt. While this may seem like the most appropriate solution at first glance, bankruptcy has resounding impacts that can take years to overcome.
How Are Medical Bills Classified?
Before you can take action to resolve your medical debt, it is important to understand how that debt is classified. Generally speaking, debt is divided into one of two broad categories.
The first is known as secured debt. This type of debt refers to things like your mortgage or vehicle note. The debt is “secured” by real property.
If you default on the loan, then you will lose the property that you have purchased. Resolving this type of debt can be quite challenging.
Medical bills are considered to be unsecured debt. This is because they are not backed by any tangible items. Some other common types of unsecured debt include credit card bills and student loans.
Borrowers that owe unsecured debt have more legal protections in place. This is especially true when it comes to COVID-19 medical bills because receiving treatment can be necessary to ensure overall wellbeing.
There are multiple ways that you can find relief from these debts. The most practical option is to partner with an attorney that specializes in debt resolution and consumer protection law.
A Light at the End of the Tunnel
If you have found yourself overwhelmed with medical debt during the COVID-19 pandemic, there is hope. Seek out the services of a debt resolution attorney.
These skilled professionals will ensure that your legal rights are protected. In addition, they can negotiate with debt collectors to reduce or eliminate your medical debt. Their goal is to help you achieve financial freedom.
If you are unsure where to start, Resolvly can help. The financial experts at Resolvly can give you a better understanding of the financial concerns that you’re facing. They can even connect you with a trusted debt resolution attorney in your state.
Resolvly is a Florida Bar-approved lawyer referral service that helps clients nationwide connect with consumer protection attorneys that specialize in debt resolution. Founded in 2015, the Boca Raton-based company has become an industry leader by helping thousands of Americans find the right, legal-based solution to reduce or eliminate their unsecured debt. Resolvly helps with credit card debt, private loans, private student loans, business debt, medical bills, and vehicle repossessions.