One-third of individuals who have credit card debt are in that position because they used their credit card to pay for a medical bill, according to the results of a national survey that was released last week. About 10% of that group that have used a credit card to pay for a medical bill owe at least $10,000, according to the survey, which was conducted by CompareCards.com.
For companies in the credit and collection industry, knowing how an individual is paying their debt can be helpful, especially when developing a comprehensive financial portrait of someone. Going into debt to pay off debt can put individuals into a problematic cycle that they may never escape from.
The survey results also indicate that most people are not using their credit cards to pay for a medical bill because they want the reward points or miles, either. About 60% of the survey’s respondents said the would not have been able to pay for the bill if they did not use their credit card. This was especially true among members of the millennial generation. More than three-quarters of that group said they had no other way to pay the bill than to charge it. To be fair, there was a decent portion of survey respondents who did say they used their card to pay the bill because they wanted the rewards points.
About 31% of people who have used a credit card to pay for a medical debt hav at least $1,000 worth of medical debts they are still paying off, according to the survey.
About 30% of those who used a credit card to pay for a medical bill now regret doing so.