Medical expenses can escalate quickly. When the bills start stacking up, it might feel easier to set them aside. However, ignoring them often leads to more serious financial consequences that are difficult to reverse.
Your credit score can take a hit
When medical bills remain unpaid, healthcare providers frequently transfer the debt to a collection agency. This typically occurs after a period of 60 to 180 days. Once in collections, the debt appears on your credit report and can significantly lower your score. A diminished credit score can interfere with securing housing, obtaining loans, or qualifying for favorable interest rates.
You may face debt collection calls
Unpaid medical debt often triggers collection activity. Debt collectors are legally permitted to contact you and may do so repeatedly. If direct communication fails, they might reach out to your family members or place of employment. Although debt collectors must follow strict regulations, the experience can be invasive and stressful.
You could get sued in court
Extended nonpayment may result in legal action. Medical providers or collection agencies can file lawsuits to recover the owed amount. If the court rules in their favor, they could be granted the right to garnish your wages or place a levy on your bank account. Failing to respond to court summonses can worsen the outcome.
Late fees and interest can grow your balance
Even a manageable bill can become unmanageable if left unpaid. Accrued interest and late fees can substantially increase the total amount owed. What began as a modest expense can evolve into a long-term financial burden.
You don’t need to pay the entire balance at once. Many healthcare providers offer installment plans or financial assistance. By addressing medical debt early, you can avoid collections, legal issues, and escalating costs. Prompt action preserves more options for resolving the debt.
