General Questions

What is Shred the Debt, and how does it work?

Shred the Debt is a Shaper-driven initiative designed to eliminate the burden of medical debt in the United States. The campaign raises funds through partnering with Undue Medical Debt to purchase outstanding medical debt at a fraction of its original value and then forgives it entirely, providing financial relief to individuals and families.

How does Undue Medical Debt buy and forgive medical debt?

Undue Medical Debt has hospital partnerships and buys debt in the form of bundled portfolios. Undue buys the debt of those who earn at or less than 4x the federal poverty level and/or those whose debts are 5 percent or more of their annual income. Undue Medical Debt never collects on the debts they purchase, they only forgive it.

Who benefits from the campaign’s efforts?

Shred the Debt campaigns eliminate debt for those who earn at or less than 4x the federal poverty level and/or those whose debts are 5 percent or more of their annual income. Due to HIPAA guidelines, we do not know exactly who benefits from the campaign’s efforts, just that they are benefiting people in our region. Once your campaign is completed, Undue Medical Debt will send you a Debt Fulfillment Report detailing the amount of medical debt abolished and for how many people.

What happens if my hub doesn’t raise the minimum amount?

Undue Medical Debt will still donate what was fundraised to your campaign’s region. Very rarely will your funds raised not go towards your targeted area(s). If your campaign does not raise a substantial amount ($20), the money raised will be directed towards their national campaign. Either way, medical debt is erased!

Undue Medical Debt is asking whether my hub wants to do a local donation or crowdfunding campaign. Which do I pick?

We recommend a crowdfunding campaign as it requires no upfront cost from your hub. A local donation is a single donation transaction made by your hub (e.g. a check) to Undue and is split 80/20, with 80% going towards erasing medical debt and 20% going towards general operating expenses for Undue.

Does my hub need to be a 501(c)3, be fiscally sponsored, or have a dedicated bank account for a campaign?

No, Undue Medical Debt hosts the campaign through their own fundraising platform similar to GoFundMe. When creating a campaign, be sure to create a crowdfunding campaign as opposed to local donation. Crowdfunding campaigns are not under the 80/20 donation split.

Will the Shred the Debt project team provide financial support to my campaign?

Unfortunately, we are not able to provide financial support to campaigns. All fundraising should be localized to your hub’s network and community. The Shred the Debt project team can support through amplification on social media and project support through our WhatsApp channel.

If you have any other specific questions related to Undue Medical Debt, please visit https://unduemedicaldebt.org/faq/ or ask the team at Undue directly when you are in contact with them during your campaign creation phase, as they will have the most up to date information. The information related to working with Undue Medical Debt has been provided from current hub’s interactions with Undue and is subject to change. When in doubt, defer to the Undue Medical Debt team!