Token Tales: Credit's Past, Medical Debt’s Present

Token Tales: Credit’s Past, Medical Debt’s Present

Token Tales: Credit’s Past, Medical Debt’s Present https://aepc.us/wp-content/uploads/2023/01/iStock-1077486322-scaled.jpeg 2560 1706 AEPC Health AEPC Health //aepc.us/wp-content/uploads/2021/05/AEPC-LOGO-v1.png July 19, 2025 July 19, 2025

When you hear the word token, what comes to mind? Cryptocurrency? A subway pass? Maybe a security key for your computer? Turns out, tokens also have a long history in consumer credit — long before plastic cards and digital wallets.

From Coins to Credit Cards
Long before today’s sleek cards with stripes, chips, and cashback perks, credit came in clunky form. In the early 1900s, shoppers used metal or celluloid tokens— stamped with a store name and customer number. Think of them as vintage crypto — minus the risk of losing them online.

Back then, credit wasn’t about perks. It was about getting by. Store credit helped people afford essentials like stoves, sewing machines, and furniture.

By the 1930s, tokens morphed into Charga-Plates — metal cards in leather sleeves. In 1950, Diners Club made credit portable, launching the first card accepted by multiple businesses. Then came the tech upgrades: IBM’s magnetic stripe in 1969, rewards programs in 1984, and now chips and digital wallets. Game on.

Buy Now, Regret Later?
Credit cards have long promised convenience — and reward points — but making only minimum payments can quickly dig you into a deeper hole thanks to high interest rates.

Fast-forward to today, and there’s Buy Now, Pay Later (BNPL), which offers interest-free installments and easier approval than traditional credit cards.

Sounds great — until it’s not. A recent LendingTree report found that four in ten BNPL users made late payments last year, up from one in three the year before. Missed payments can result in late fees and bank overdraft charges — making BNPL purchasing an expensive proposition.

Medical Bills, No Perks
Sometimes, the debt weighing you down isn’t from splurges — it’s from getting sick. Medical debt is one of the most common forms of debt sent to collections — and a major reason people file for bankruptcy. Not for luxury treatments, but for broken bones, the birth of a baby, emergency surgeries, and life-saving prescriptions.

Even with insurance, a single medical emergency can upend a family’s finances. And unlike that espresso machine or vacation deal, there are no points, perks, or rewards. Just bills — and stress.

A Rule That Could Have Helped Upended
On January 7, 2025, the Consumer Financial Protection Bureau (CFPB) finalized a rule to wipe $49 billion in medical debt from credit reports — offering relief to 15 million Americans.

Why? Because medical debt, CFPB research shows, isn’t a reliable predictor of whether someone can repay loans. Health bills are often riddled with errors and delays, as patients get caught between hospitals, insurers, and billing departments.

But that same month, the Cornerstone Credit Union League and Consumer Data Industry Association sued, arguing the CFPB had overstepped its authority. Though the rule was set to take effect in about 60 days, the CFPB — under new leadership following the Trump administration’s return — asked for a delay. The court granted it.

And last week, U.S. District Judge Sean Jordan in Texas sided with the plaintiffs. The CFPB’s rule, he said, went too far.

So that unpaid ER visit from two years ago? It’s going to keep dragging down your credit score. And a lower score doesn’t just mean higher interest rates. It can block you from getting a car loan, a mortgage — or even renting an apartment.

Storm Clouds Ahead
All of this is unfolding in the middle of a financial perfect storm:

Student loan payments have resumed for many.
Credit card and mortgage rates are at or near multi-decade highs.
Inflation is driving up everyday costs, and the impact of tariffs looms.
Health insurance premiums are on the rise.

And medical debt? It’ still sticking to your credit report.

No Token Care
Health care isn’t a token perk or a luxury. It’s not a buy now, pay later choice — it’s a get care now or risk everything reality. And erasing medical debt isn’t as easy as shaking an Etch A Sketch.

But with better policies and real protections, we can redraw the rules — and make affordable healthcare a right for everyone.

Happy reading,

Suzanne Daniels

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