How to Reduce Bad Marks from Medical Debt

According to the Consumer Financial Protection Bureau, unpaid medical debt has damaged the credit of around 43 million people. And that’s not just the uninsured, WKYC reports.

It often happens because of billing mix-ups and high debt-to-income ratios.

Here are two things you need to do:

  1. Look at your credit report

Errors are common. The two most common mistakes? Your credit file is connected with someone else’s who has a similar name or a false lien was filed against you. You start by disputing those mistakes with the three credit bureaus.

2. Report your fee disputes

If you have a fee dispute with a provider and they reported it, call the State Insurance Department and or the American Medical Association. They can intervene on your behalf.

If all else fails, go to small claims court. You’ll pay a filing fee but it is recoverable if you win.

That’s really best used as a tactic to call the other party’s bluff and get them to remove the bad mark on your credit.