Americans may face medical debt even with health insurance for a variety of reasons, from high deductibles to uncovered items to billing errors and insurance disputes. Regardless of the reasons for medical debt, Texas residents can face consequences if these bills go unpaid. Many may wonder how delinquent medical bills may affect their credit.
How to manage the effect medical debt has on a credit score
Consequences of only paying the minimum when in credit card debt
It is not uncommon for Americans to carry a balance on their credit cards. Those who are having difficulty with payments may opt to only make the minimum monthly payment on the balance, usually between $20 to $25 or between 1 and 3 percent of the total balance. However, Texas credit card debt holders who do this may face some consequences down the line.
Should I pay off my credit card debt with a personal loan?
Most people have a love-hate relationship with their credit cards. These cards are useful when funds are tight, but they can also present a heavy debt burden for the average Texas consumer. Although there are a few smart choices for dealing with overwhelming credit card debt -- including bankruptcy -- some consumers are turning to personal loans to solve their problems.
Carrying credit card debt likely not helpful for credit scores
According to a new report, 22 percent of credit card users carry a balance in hopes of improving their credit score. However, carrying a balance on a credit card is not one of the five main criteria for a credit score. Being closer to a credit limit due to credit card debt, however, can have a negative impact for individuals in Texas and across the country.
Putting off Chapter 7 bankruptcy can have serious consequences
The decision to file for bankruptcy is a serious one that people rightfully do not take lightly. While careful consideration is a good idea, procrastinating on filing for Chapter 7 bankruptcy can be a bad decision. There are a few reasons that Texas individuals who know they need to file should consider doing it sooner rather than later.
