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Fun
Transcript
00:0046 million. That's how many Americans had medical debt on their credit reports in 2020.
00:05And medical debt itself is the leading cause for personal bankruptcy in the US.
00:10Obviously, the physical to financial illness pipeline is a major problem.
00:14A medical bill isn't a problem in itself, but if you don't pay it for a while,
00:19the medical office can send it to collections. This turns the bill into an unpaid debt,
00:24negatively impacting your credit score. This can put things like buying a car,
00:28house, or getting into a new apartment at risk. Recently, the Biden administration,
00:33along with the CFPB, proposed a change that would eliminate all medical debt from credit reports,
00:38no matter how large. Some local and state governments are actually
00:42using funds from various sources to pay off some citizens' medical debts.
00:46Once a debt goes into collections, it can be bought for pennies on the dollar.
00:50New York City is planning on using about $18 million to erase $2 billion in medical debt.
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