Medical debt makes up 58% of collection accounts on credit reports. Daniel Rosen explains why getting sick shouldn't tank your credit score, and how regulators are finally starting to agree.
58% of all third-party collection accounts.
Did you know that medical debt is the number one source of collections on credit reports? We're talking about 58% of all third party collection accounts. More than half of all collections dragging down credit scores are from medical bills. Not credit cards, not car loans, but medical bills. These are regular folks like you or me who who got caught in our broken health care system. But here's the good news. The credit bureaus and the regulators are finally acknowledging that medical debt is different from other types of debt. Because medical debt isn't like regular debt. You don't choose to get sick. And when the system is so complicated with insurance mix ups and billing errors, it's just not fair to punish people's credit for that.
