Finance
Medical bills often become hidden credit card debt, experts warn
As credit card balances reach record highs, medical bills paid with plastic are turning into hard-to-track shadow debt for many households.
Total household debt reached $19.1 trillion in the third quarter, while Americans' credit card debt climbed to a record $1.29 trillion. Although direct estimates put existing medical debt at around $220 billion, experts note that healthcare expenses frequently become difficult to track when consumers pay them using credit cards or other loans. Financial counselors report that medical hardships drive a significant portion of client debt. High-deductible health insurance plans often leave patients facing unaffordable medical bills, leading some individuals to accumulate compounding interest and large balances on credit cards before seeking professional help.
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