Put on your surprised faces … a new survey from Debt.com highlights growing concern among U.S. consumers about the impact of medical debt on their credit reports, with 9 in 10 Americans agreeing that medical debt should not appear on credit reports. This opinion comes just months after the Consumer Financial Protection Bureau implemented a rule to remove medical debt from credit reports. However, the future of the rule is uncertain, as some lawmakers seek to dismantle both the rule and the CFPB itself.
The Debt.com survey reveals that a significant majority — 91% — of those with medical debt agree that it should be excluded from credit reports. The survey also underscores the severe financial burden that medical debt has placed on Americans. More than half (51%) of respondents said that medical debt has already hurt their credit scores, with nearly 30% experiencing a drop of 50-100 points, and 14% reporting a decrease of over 100 points.
Medical Debt: A Financial Crisis for Many
The impact of medical debt extends beyond just credit scores. The survey details how widespread medical debt is and how it affects individuals’ lives. Fifty-one percent of respondents currently owe medical debt, and 59% said they have delayed or skipped necessary medical care because of the debt they already owe. Additionally, 20% owe $10,000 or more in medical bills, with 9% owing $50,000 or more.
The financial consequences of medical debt are severe, with many consumers tapping into their savings or borrowing money to cover their bills. According to the survey, 36% of respondents had to drain their emergency savings, while 26% dipped into retirement funds or charged the debt to credit cards. A further 17% struggled to afford basic necessities such as rent, utilities, or food.
Medical Debt and Life Goals
The survey also highlights the broader life impacts of medical debt. More than half (57%) of respondents say that their medical debt has delayed major life goals, such as pursuing higher education, getting married, buying a home, or starting a family. Millennials are particularly affected, with 62% reporting that medical debt is holding them back from achieving these milestones.
A Call for Action
As the debate continues over whether medical debt should remain on credit reports, the survey indicates a clear desire among Americans for reforms that better reflect the realities of healthcare costs. With inflation making it even harder for consumers to pay off medical debt, 86% of those surveyed say they have found it more difficult to pay off their medical bills in recent years.
