• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Pay off your debts faster

In her interview with Sherri Shepherd, Harris said that “no one asked for that health emergency to happen, it’s not a sign of irresponsibility” inferring that Amercicans (and their credit scores) shouldn’t have to be punished for needing a visit to the emergency room.

The Kaiser Family Foundation recently reported that Americans owe a total of roughly $220 billion in medical debt, with at least 14 million people owing $1,000 or more.

Of course, medical debt’s impact on your credit score becoming obsolete is a positive, but it doesn’t erase the debt, or any of your other kinds of debt for that matter.

Regardless of what you may owe, consolidating your debts with a personal loan through Credible can help you pay them off faster and further optimize the advantage of medical debt being scrubbed from your credit score.

Credible is an online marketplace of vetted lenders that helps you browse for the best loan options near you. When you fill in a bit of information about yourself, Credible will help you compare up to 7 lenders without tarnishing your credit score that you're already working on improving. By doing this, you can find rates and payment schedules that work for you.

Healthcare.com found that in 2022 that 52% of American millennials, 48% of Gen X and 43% of baby boomers’ credit score was negatively impacted by their medical debt. With that in mind, the White House’s commitment to reducing medical debt’s impact on credit scores could make a huge change for the finances of many Americans.

As this legislative change continues to roll out, it’s important to make sure you’re keeping track of your credit score — especially if you are looking to get a favorable rate on a car loan or mortgage. Whether you’re consolidating debts or not, knowing what score you’re starting at will help you plan how to get to the score you want to have.

With Credit Karma you can get your credit score for free and easily stay on top of your progress as you tackle paying off your debts. Credit Karma offers personal insights with their easy-to-read reports so you can monitor your credit score and know exactly what you need to do to boost it.

Prevent more health-related debt

Just because the burden of medical debt’s impact on credit is being reduced, it doesn’t mean the debt’s overall impact is obsolete. There is still a possibility that your loved ones’ are left with your medical debt when you pass, which is why protecting their future with life insurance is so important.

Especially if you have debt obligations, term life insurance can offer flexibility when you're seeking affordable coverage while balancing other financial responsibilities.

By opting for term life insurance through a provider like Ethos, you are helping to ensure that your family will be taken care of after you’re gone.

To get a free quote, all you have to do is answer a few questions about yourself. Then, you can compare coverage and choose the right policy that best suits your needs

The financial burdens that come along with old age are also worth considering when it comes to insurance coverage. Having adequate care during that time can be expensive and add on to your family’s financial burden.

With GoldenCare’s long term care insurance, you can get things like nursing homes, assisted living and other daily-living aids in daily living covered so you and your loved ones don’t have to pay out of pocket or rack up more health-related debts.

While traditional health insurance covers certain medical needs in old age, such as prescriptions and doctor visits, long term care insurance covers health needs specific to old age like assistance with daily bathing and meals.

All you have to do is fill in a bit of information about yourself and GoldenCare will provide you with a free quote for long term care coverage that fits your needs and budget.

Get professional input

While paying off your debts might seem like a no-brainer, the exact path to capitalizing off this new legislative change might be muddled as everyone’s financial situation is different. This is where professional input and advice is helpful in ensuring you have the chance to improve your credit.

With Zoe Financial, you can connect with professionally vetted financial advisors in as little as three minutes and find the right match for you.

Zoe Financial is a modern wealth platform offering you access to curated fiduciaries, financial advisors and financial planners

When you answer a few questions about yourself, their algorithm will match you with professionally vetted advisors with no obligation to hire.

Em Norton Staff Writer

Em Norton is a Staff Writer for Moneywise. Em holds a B.A. in Professional Writing from York University and has been writing professionally since 2019. Em's work has previously been published by Room Magazine, IN Magazine, Our Canada and more.

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.