The Pitfalls of Medical Credit Cards for Patients' Finances
The Biden administration has warned Americans about the risks of medical credit cards and other loans for medical bills, citing high interest rates that can deepen patients' debts and threaten their financial security. The Consumer Financial Protection Bureau estimated that people in the U.S. paid $1 billion in deferred interest on medical credit cards and other medical financing in just three years, from 2018 to 2020. The vast scope of the problem is feeding a multibillion-dollar patient financing business, with private equity and big banks looking to cash in when patients and their families can't pay for care.