Medical debt is a type of consumer debt that is incurred when an individual is unable to pay for their medical expenses. This type of debt is often difficult to pay off due to the high cost of medical care, and can have a significant negative impact on an individual’s financial health.
Medical debt can be particularly damaging to those who are already struggling financially. Even a single medical bill can cause a financial crisis and can quickly spiral into other forms of debt. Medical debt can result in high interest rates, late fees, and collection costs, all of which can add up quickly and make it increasingly difficult to pay off the debt.
This can lead to a decrease in credit scores, which can make it difficult to secure loans or other forms of financial assistance. Medical debt can also have a long-term impact on wealth building and family economic security. The debt can prevent individuals from saving money, which can have a long-term impact on their financial well-being. Medical debt can also prevent an individual from investing in assets that could help to build wealth and increase their economic security. This can have a significant impact on the ability of the individual and their family to build wealth and secure their financial future.