Some people in North Carolina may be among the 30% of Americans who have at least $500 in medical debt. While medical debt can affect a person's credit score, it is treated differently from other kinds of debt. Medical providers do not report debt, but once it is in the hands of a collection agency, this can change. Even if the collection agency reports the debt, credit reporting agencies wait 180 days before they in turn report it to credit bureaus. FICO, the most common credit rating model, ignores balances that are less than $100.
Consumers throughout the country owe more than $1 trillion in credit card debt. While an increase in credit card debt may be good for the economy as a whole, it isn't necessarily a good thing on a personal level. However, there are ways that a North Carolina resident can reduce or eliminate credit card debt balances. These strategies are called the snowball and the avalanche methods.
One of the primary reasons people give for choosing to postpone or avoid bankruptcy proceedings is concern about how bankruptcy will affect their credit score. While bankruptcy is a negative mark that stays on your credit report for some time, struggling with debt also damages your credit score.
Those who discover they have cancer often become hyper-focused on the medical battle into which they are suddenly thrust. Dealing with the stress and physical consequences of cancer treatments like chemotherapy and radiation can require all of a person's energy.
The credit scores that can affect many aspects of life for North Carolina residents are based on several factors, including whether an individual has filed for bankruptcy. Some filers may wonder if there's a difference between old and new bankruptcies when it comes to credit scores. The answer is largely dependent on what a debtor does after bankruptcy has been approved.