Consumer Payment Card News

Cards & Dx Bills

A new report has found that more and more consumers are using credit cards for medical expenses and racking up bigger and bigger balances. For example, credit card debt levels of medically indebted young adults were $13,303, considerably higher than credit card debt levels for non-medically indebted young adults of $7,450. NY-based Demos found that 29% of low- and middle-income households with credit card debt reported that medical expenses contributed to their current balances. Within that group, 69% had a major medical expense in the previous three years. Low- and middle-income medically indebted households had higher levels of credit card debt than those without medical debt-on average 46%. ($11,623 versus $7,964). The “Borrowing to Stay Healthy: How Credit Card Debt Is Related to Medical Expenses” report concludes that medical debt should be differentiated from consumer debt; there should be a limit on the entry of medical providers into financial services; there should be an increase in oversight of medical credit cards and the lines of credit attached to Health Savings Account products; there should be improved screening for eligibility in public or private financial assistance programs; and “Borrower’s Security Act” should be enacted. For more information visit: “”:

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