It’s not every day that the government does a little erase trick with American debt…but it looks like they’re going there! 🤩🎉
Butthurt about your student loan debt still lingering? 🎓 Perhaps a new proposed rule to delete medical debt from your credit report will lift your spirits?! 🩺
Here’s Five Fast Facts on the new medical debt rule:
- 🧽 Clean Slate - A new proposed rule, released through the Consumer Financial Protection Bureau, would remove medical debt on American credit reports. The number of Americans with medical debt would be drastically reduced from 46 million to zero. Phew!
- ⏫ Movin’ On Up - Once the rule is in place, people with newly erased medical debt would provide an average credit score increase of 20 points. Additionally, the spruced-up credit reports could result in the approval of around 22,000 more mortgages.
- 🏥 What’s Up, Doc? - Medical debt is fairly common for Americans. A recent study revealed that roughly one in five households live with medical debt, and that includes people with health insurance. The average American household owes around $4,600 in medical debt.
- ✅ Off to a Good Start - The Consumer Data Industry Association says it already got the ball rolling. So far, they’ve worked to remove almost 70% of medical collection debt accounts. They’ve also extended the time before medical collections debt shows up on credit reports and deleted resolved debts and collections under $500.
- 🐴 Hold Your Horses - Ready to stop paying those medical bills? Not so fast, partner. This new proposal is still open to comments and will be until August 12th. The earliest this rule would take effect is sometime next year. Also, please be responsible and pay your bills…if you can!
🔥Bottom line: Speaking of credit reports, how often do you check yours for errors? One little mishap there could result in a ton of financial headaches. Check out this article where we break down ways to make sure your report stays squeaky clean.
Do you have medical debt on your credit report?
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