Bankruptcies Related to Medical Debts on the Rise

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According to a study conducted by credit counseling agency CredAbility, 20 percent of those seeking bankruptcy protection cite medical debt as the cause.
October 06, 2011 /24-7PressRelease/ -- According to a study conducted by credit counseling agency CredAbility, 20 percent of people receiving credit counseling -- which is a prerequisite for filing for bankruptcy -- cite medical bills as the reason that they need bankruptcy protection. The organization says this is a spike from the previous two years, when 12 to 13 percent of consumers seeking bankruptcy said that medical bills were the cause of their financial difficulties.

Michelle Jones, CredAbility's Senior Vice President of Counseling, told the New York Times that the reason for the spike is the perfect storm of rising medical costs and shrinking available job opportunities, which has made it necessary for many Americans to charge their medical bills on credit cards. This, coupled with the fact that many people feel like they must pay their medical bills no matter what, has created a financial downward spiral for many consumers.

Read more: http://digitaljournal.com/pr/444851