Consumers struggling to keep up with their personal finances may find that medical debts can be a major factor in holding back their efforts.

The Washington Post and Kaiser Health News recently teamed up for a story that examines the effect medical debt has had on families caught trying to stay afloat in the credit crunch and recession.

The report notes that many Americans are generally paying more for less healthcare, potentially becoming exposed to long range financial trouble in the process. Financial liens and bad credit ratings can be one long-term effect of medical debt problems.

With that in mind, there is speculation that the incoming Obama administration may make it easier for consumers who have filed bankruptcy for medical reasons to re-establish their credit. Kaiser also notes that some states like New York have moved to protect consumers, for example with a law that bars foreclosures of properties that have become distressed due to one's medical bills.

The article also cited statistics showing that 72 million Americans under age 65 are having trouble with medical debt, an increase from 58 million in 2005, even though many of these people have some form of insurance. Worse, consumers often have little choice about cheaper treatment options, nor do they often have the ability to delay treatment.

Some of the tips consumers can consider when dealing with medical bills is to never place them on a credit card or mortgage a house to pay them. Consumers are also advised to thoroughly examine payment options, including discount care programs and trying to negotiate a payment plan.

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