This Debt May Soon Disappear From Credit Reports In New York

If Governor Kathy Hochul signs a new bill, a certain type of debt will disappear from New Yorkers' credit reports. The bill (A06275A / S04907-A) recently passed in the Assembly on Tuesday, June 20, 2023, by a vote of 107 to 37. The Senate version was already passed by a vote of 48 to 10. It previously passed the Senate 48-10. Now the bill will go to Gov. Hochul to sign.

Photo by Artem Beliaikin on Unsplash

New York Lawmakers Pass Bill Prohibiting Medical Debt From Impacting Credit

The bill prevents medical debt from being reported to credit agencies in New York,

Prohibits medical debt from being collected by a consumer reporting agency or included in a consumer report and prohibits medical service providers from reporting medical debt directly or indirectly to a consumer reporting agency.

The Democrat & Chronicle reports that a New York Health Foundation study found that more than 740,000 residents around New York State have medical debt that has been reported to a debt collection agency and their credit reports.

Photo by Olga Kononenko on Unsplash

Nationally, 28% of Black people and 22% of Hispanic/Latinos carry medical debt versus 17% of whites, New York-based advocacy group Community Service Society reported.

Medical debt can affect a person's ability to purchase a vehicle, rent or buy a house, get a credit card, and potentially even a job. Community Service Society says that 38% of New Yorkers avoided care or sacrificed other necessities because of the cost of health care.

Get our free mobile app

Causes of Credit Card Debt

Credit Card debt in America sits at a record $986 billion. And 35% of American adults carry some kind of credit card balance. Developing good financial habits, such as budgeting, saving, and understanding credit card terms, can help prevent or manage credit card debt effectively. It's important to note that each individual's situation is unique, and a combination of these factors or other personal circumstances can contribute to credit card debt. Here are some of those factors

How To Protect Yourself And Your Money If You Win The Lottery

Whether you've recently won the lottery (or are planning to!), there are some things you should do right away to protect not only yourself but also your money.