Good News for Minnesotans with Outstanding Medical Bills?

If you are thinking about buying a house or a vehicle, you should have a rough idea of what is on your credit report first, so you can know where you stand in that quest. 

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Banks and lenders will look at your experience in paying things on time to determine if you are “worthy”, their word not mine, of them giving you money. 

Everybody hits hard times and sometimes you have to decide what you pay first, and often medical bills get kicked down the ladder of priority. 

I’ve heard more than one financial expert say the first thing you worry about is your electricity, food, and gas to be able to get to work. Then you work your way to paying your bills from there, which again, will likely leave medical bills unpaid. 

Yesterday, Vice President Kamala Harris announced that medical debt can no longer be used against potential borrowers when seeking a loan.  

Reports state that there is $49 billion dollars in unpaid doctors' bills that will be removed from credit worthiness reports for American citizens.  Some of those bills will be paid through monies from the American Rescue Plan. This plan will cover the medical expenses that are hanging out there for over 700,000 people. 

Now, it’s important to note this. You still have to pay the outstanding debt, this is not a forgiveness type of deal if you still owe for doctors or hospital bills.  

This just means that lenders can no longer hold you accountable for these bills, because they should not even know they exist. 

Expectations are that there are many families who have been handcuffed by medical debt appearing on credit reports, and this may actually open up for Americans for home and vehicle loans.