On Monday, June 11, both U.S. VP Kamala Harris and CFBD Director Rohit Chopra released a statement on plans to remove medical debt from credit reports, a reality that plagues 15 million Americans.
Such a policy move should help this group see credit score boosts on average of 20 points for each individual. For those in the position to have medical debt, that’s a great thing — money is the last thing those battling certain conditions need to worry about. In addition, Harris also noted the Biden Administration plans to continue to investigate new ways to reduce medical debt burdens across the board.
These initiatives will. complement the $7 billion in debt elimination the Biden team expects to see through 2026 via the American Rescue Plan. Let’s dive into what specially was announced, and what this means for Americans’ credit moving forward.
What is the American Rescue Plan? The American Rescue Plan is a $1.9 trillion package the government put forward in the pandemic’s wake. This program was aimed at reducing economic hardships for American families, fostering an equitable recovery.
To some extent, it certainly achieved its goal. The rescue plan is famous for providing direct checks to Americans, though some critics of this plan have said it has fueled inflation. Other benefits have ben seen on the unemployment side, child tax credits, and health insurance.
Each of which have improved key metrics the Democrats have been looking to move the needle on for some time. Im.