As Americans drown in medical debt, how one family found a lifeline
Summary
Coy and Caty Smith, public school teachers in Texas, accumulated more than $30,000 in medical and related debt after their newborn son was hospitalized and Caty’s health problems reduced her income. They sought help from a credit counseling firm, which negotiated lower interest rates and helped them set up a repayment plan.Key Facts
- The Smiths owed more than $30,000 by 2023, including credit card debt used to cover medical and household expenses.
- Their youngest son spent a week in the hospital with lung problems, leaving the family with $10,000 in bills after insurance.
- Caty Smith’s health problems caused her to miss work, and her employer reduced her pay.
- The couple said some of their debt carried interest rates as high as 30%.
- They estimated that a personal loan repayment plan would take 30 years and cost $150,000 in interest.
- The Smiths contacted Money Management International, a credit counseling firm, for help.
- A counselor negotiated lower interest rates with creditors and helped the couple arrange regular payments to repay the debt.
- KFF estimates that about 40% of Americans have debt for medical care not covered by insurance, complex conditions, or hospital stays.
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