Survey Reveals How Inflation is Impacting Americans: Physically and Financially
Is inflation adversely affecting us? Debt.com's annual survey indicates that Americans are struggling to keep up with their medical expenses, and some are even opting to forgo necessary medical treatment.
FORT LAUDERDALE, Fla., Oct. 20, 2023 /Noticias Newswire/ — If inflation isn’t making you sick, it might be keeping you sick.
Debt.com’s 2023 medical debt survey shows some worrisome increases over its 2022 results:
- This year, 67% reported that “inflation made it harder to pay medical bills.” That’s a significant jump from 57% the year before.
- Nearly a third (32%) said their medical bills were in collections this year. Last year, it was only 28%.
- Most concerning of all: 34% admitted they have been “avoiding medical care because of debt” – up from 28% in 2022.
“Inflation may be subsiding, but the damage it wrought will stay with us for a long time,” says Debt.com founder and chairperson Howard Dvorkin, CPA. “Medical debt was a growing problem before inflation, even before the pandemic. Now it’s becoming a crisis.”
The problem is so pervasive, it’s no longer a major illness that causes financial problems. It’s regular appointments with doctors – even more than going to the hospital or emergency room:
2023 primary source of medical debt
- Doctor’s visit: 21%
- Hospitalization: 17%
2020 primary source of medical debt
- Doctor’s visit: 15%
- Hospitalization: 25%
The only good news in this year’s Debt.com survey is that the amount of medical debt is lower than in past years:
2023 medical debt amount
- Less than $500: 56%
- $1,000 to $5,000: 15%
2020 medical debt amount
- Less than $500: 20%
- $1,000 to $5,000: 34%
Dvorkin believes these results show Americans are so financially stressed, they can no longer afford even the basic medical care. “Medical debt doesn’t exist in a vacuum. It’s quite likely that doctor’s visits have become harder to pay because Americans have many other debts they’re juggling. Credit card balances are approaching levels not seen in decades, and student loans aren’t getting any smaller. Add in regular checkups, and it’s a cumulative and pervasive problem.”
Even worse, Dvorkin says these numbers reveal that Americans are unaware of the proven methods to help with medical debt – from payment plans to debt settlement. “Today, most people are aware of their credit scores, and they understand the impact of high interest rates on their credit cards. They’re even learning about their options for lowering student loan payments. But they don’t know how to handle their medical bills. And that’s just not good for their health.”
About Debt.com: Debt.com is a consumer website where people can find help with credit card debt, student loan debt, tax debt, credit repair, bankruptcy, and more. Debt.com works with vetted and certified providers that give the best advice and solutions for consumers ‘when life happens.’