Refusing to Pay Can Hurt You More Than Them

The Wisconsin State Journal notes there are some situations where you might be tempted to refuse to pay a medical bill, and what you might want to consider doing instead.

It’s true that the latest versions of the FICO and VantageScore credit scoring models treat medical debt less harshly than other collections, but most lenders use older versions of the scores. The toll of a missed medical bill can become significant: A single collection account can drop a 680 FICO score by 40 points and a 780 score by 100 points.

Here’s what to do instead:

“If you have health insurance, follow up on every medical bill you receive to make sure it gets paid. If you don’t have insurance or can’t pay your bill, ask health care providers if they have charity programs or payment plans that could make the costs more manageable.”

For more information on the issues surrounding medical debt, please contact RIP Medical Debt.