The Congregational Church of Belmont finds ways to help the community every year, and decided to take on a growing problem for many Americans — medical debt.
While they don’t know the individuals they helped, the church was able to raise $6,500 that went toward 1,482 individuals erasing $2,671,553 of their debt.
Michelle Carter, chair of the church’s Communications Board, said the funds were raised from community events. They held pie sales and a yard sale which included the College Heights United Church of Christ in San Mateo and Island United Church in Foster City. There were memorial donations and an anonymous donor who matched the funds.
“For us, it was not a small amount,” said Carter who added that the church has fewer than 100 members.
The church is part of the United Church of Christ, which for the past four years has worked with RIP Medical Debt, a nonprofit debt relief company established in 2014 by two former debt collection executives. For every $100 donated, $1,000 in debt is relieved, according to RIP, and Carter thought the church’s donation would alleviate $650,000 in debt. When they found out it was more, Carter said it blew their socks off.
RIP buys medical debt from collection agencies and buys the uncollected medical debt from hospitals and other medical institutions. Once the debt is relieved, RIP helps the former debtor to reestablish credit scores, according to a press release.
“Because we purchase the debt in large bundles, we are able to buy debt at a fraction of the original cost,” Adeena Eisen, a representative with RIP, said.
RIP abolishes medical debt for individuals who earn less than four times the federal poverty level and debts which are 5% or more of the debtors annual income, Eisen said in an email.
“When we relieve debt, we do not count it as income. As a result, debt relief recipients have no adverse tax consequences or strings attached. They also receive a letter from us to let them know their debt has been relieved,” Eisen said.
About $195 billion in medical debt is owed by over 100 million Americans, according to the RIP website.
The church is continuing the debt relief effort and hopes to raise another $5,000 toward another debt eradication next year, Carter said, with the goal of erasing millions more.
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