Medical Debt Is Forcing 42% of Americans to Only Make Their Minimum Credit Card Payments

Now that's problematic.

It's easy to assume that medical debt is a problem mostly reserved for the uninsured. But actually, plenty of people with health insurance -- even good insurance -- end up with medical debt. 

Between high deductibles and out-of-network charges, it's easy enough to rack up thousands of dollars in healthcare bills. And if you don't have a robust savings account to dip into, you might land in debt from a single illness or injury.

Meanwhile, medical debt can be more than just stressful. It can also impact other financial decisions you make.

In a recent Discover survey, 36% of those with medical debt stopped putting money into emergency savings due to having healthcare bills to tackle, while 27% stopped paying other bills. And 42% were forced to only make their minimum monthly credit card payments due to having medical debt.

The latter is really a problem. If you only make your minimum credit card payments month after month, your debt is apt to drag on for longer -- and you're apt to accrue more and more interest that traps you in a vicious cycle. That's why it's important to get a handle on your medical debt -- before it upends your finances in other ways.

How to tackle medical debt

If you've landed in medical debt, you're in good company. But it's important you do your best to dig out of that situation as quickly and painlessly as you can.

First, study your bills carefully and make sure they're accurate. Sometimes, something as simple as the wrong billing code could spell the difference between having to pay $1,000 for a procedure or test versus no money at all. If something doesn't look right on one of your bills, make phone calls and get the matter sorted out.

Next, try to negotiate your bills down. Medical providers want to get paid, and some may be willing to shave some money off of your debt if that allows them to get paid sooner. 

At the same time, try appealing denied claims with your health insurance company if you feel you have a leg to stand on. And if you're not sure, talk to your medical providers and see if they'll write a letter in support of your appeals.

Finally, consider consolidating your medical debt with a personal loan. Personal loans tend to come with affordable interest rates. And if you're currently juggling multiple medical bills, each with a different due date, you may find that paying off a single loan makes life much easier on a whole.

How to avoid medical debt

In some cases, medical debt can't be avoided. But one way to possibly minimize it is to understand your insurance coverage fully. For example, going to an in-network provider versus someone who's out of network could save you a lot of money. 

Similarly, if your insurance company requires certain procedures to be pre-authorized, follow that rule. Otherwise, your insurer may not pick up the tab, and you may have a very difficult time fighting that.

It's unfortunate that medical debt is forcing so many Americans to put their financial goals on hold, skip out on bills, and only make their minimum payments on their credit cards. If you're in that boat, do your best to pay down your debt quickly so you can move forward and get your financial house back in order.