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Medical debt is overwhelming Americans: Here are the facts

Medical debt can lead to many problems for people who are struggling with it, but one of the worst issues is that it can impact their ability to get mortgages and buy homes. According to a Dec. 16 report, it's unexpected medical bills that are increasing the debt load of Americans.

With medical debt, potential buyers are finding it harder to get a mortgage. In fact, 38% of buyers who owe money for expenses related to health care claim that they were not given a loan for a home because of the debt that they're in. The rejection rate is allegedly higher than those who have student loans or credit debt.

In a survey by Zillow that interviewed 13,000 people, around a fifth of homeowners and half of all renters claimed they would not be able to cover an unexpected expenses around $1,000. If they already had medical debt, then that number jumped to 44% of homeowners and around two-thirds of renters.

Medical debt is a serious problem in America

According to the Organization for Economic Cooperation and Development, around $17 goes to health care for every $100 spent. Unfortunately, those medical bills often arrive when least expected, which makes it harder to cover them.

To avoid collections, many people used credit to cover medical debt. That has left around 33% of cardholders in debt. That's unfortunate, but there are ways around this situation.

You may be able to negotiate your medical bills and get on payment plans that you can afford. In worst-case scenarios, you may even be able to consider bankruptcy for a fresh start.

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