Health problems are a burden for many Louisiana residents. Not only is it difficult to cope with medical problems, but medical bills can quickly add up. Studies performed by the Urban Institute discovered that age, income levels and financial education all play parts in affecting the amount of medical debt a person may accumulate. In some cases, bankruptcy may be the best solution to overcoming substantial medical debt.
One factor that can affect the accumulation of debt is a person’s wealth. Those with annual incomes less than $35,000 are often more likely to suffer from overdue medical debt. Researchers claim that those in the millennial and Generation X brackets typically fit into this category compared to older generations. This is because it is becoming more difficult for younger generations to gain the same amount of wealth in the same amount of time as previous generations.
The study also indicated that those with lower levels of financial education are more likely to fall victim to overdue medical debt. However, they also discovered that formal financial education does not necessarily lower the risk. This could be because people seek to learn about finances after they have already fallen into debt rather than beforehand. Learning the basics, such as creating a savings cushion to help with surprise medical bills, could allow people to avoid debt in the first place.
Louisiana residents who are already facing medical debt may consider consulting an experienced bankruptcy attorney to better understand how they can clear their debts. A bankruptcy attorney could assess a client’s circumstances, provide advice and determine the best solution for the situation. By learning what options they have and how to implement those options, those in debt could begin the process of regaining financial stability.
Source: cbsnews.com, “These Americans suffer from the most overdue medical debt“, Aimee Picchi, Accessed on March 17, 2017