Economic Implications of Excluding Medical Debt from Credit Reports

Last week, the federal government announced plans to block medical debt from credit reports, which are used to evaluate a borrower’s financial fitness for large-ticket items, specifically mortgages and car loans. This would make it easier for folks to acquire more debt and not be “judged” for it. 

All things being equal, it’s not a good idea.

Let’s ignore for now whether this is right or wrong and try to exclude all political thoughts. Let’s just look at the facts.

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