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Dr. Frankenstein’s latest monster? Medical credit cards

On Behalf of | Oct 22, 2013 | Personal Bankruptcy | 0 comments

The cost of healthcare is a problem that doesn’t go away. As the fight over the Affordable Healthcare Act demonstrates this is a matter that can take the nation to the brink of economic disaster. For many residents in Louisville, attempting to pay for some healthcare services can take them over that brink, and lead them to bankruptcy.

Much of the financial crisis that nearly caused another Great Depression was brought to us by a financial industry more interested in developing financially innovative “products” that result in them earning vast sums of money. The banking and credit industries have greatly improved their earnings by a massive increase in fees. 

They are now turning their sights on the billions spent every year on healthcare. For many patients, dental expenses are not covered by private healthcare or Medicare. Some doctors are offering patients financing via a medical credit card.

The cards can carry high interest rates, with even higher rates triggered by a missed payment and very expensive late payments fees. This can begin the cascade to disaster for many on a fixed income.

The New York Times story tells of one woman who wound up paying one-third of her Social Security to cover her dental bill. She fears she will never pay it off.

Of course, medical credit cards are only the most recent financial problem caused by medical expenses. We see many clients who have been injured or fallen ill, lose their job and their health insurance, if they had any, and then are buried by healthcare costs.

Bankruptcy may be your best hope. A bankruptcy attorney can review your circumstance and help you decide the course to take.

Source: New York Times, “Patients Mired in Costly Credit From Doctors,” Jessica Silver-Greenberg, Oct. 13, 2013.