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Covering the Unexpected: Using Personal Loans for Medical Bills

Covering the Unexpected: Using Personal Loans for Medical Bills

Although medical insurance is more affordable and widely-available than ever, many Americans are still uninsured or underinsured.  When they have a medical emergency or are diagnosed with an illness, medical bills can easily mount.  In some cases, medical expenses can lead to crushing debt and even bankruptcy.  Fortunately, there are options for anyone struggling with medical debt.  Using a personal loan for medical bills may be a good choice if you are unable to pay off your medical bills and require a manageable way to pay off your debt.

Medical bills can add up in any number of ways.  Some plans require their members to pay large deductibles before coverage begins.  Others have large co-payments for appointments, treatments and procedures.  Some policies do not cover certain prescription medications or diagnostic testing.  Even if you are insured, it is still possible to rack up thousands of dollars in medical debt if you have any sort of medical emergency or are diagnosed with an illness that requires regular treatment.  You may also go into debt for procedures that are usually not covered by insurance, such as orthodontics, weight loss surgeries or fertility treatments like in vitro fertilization.

Using a Personal Loan for Medical Bills

Personal loans may be an option if you have medical bills that you simply cannot afford.  A personal loan is a loan that you can use for almost anything, including medical expenses.  After being approved for a personal loan, you will receive the full amount of the loan, which you can use to pay off your medical bills.  Then you can make regular monthly payments for the length of the loan, which is typically from two to five years.  Most personal loans have fixed interest rates, and there is often not a penalty for paying it off early.  There are two primary types of personal loans: secured and unsecured loans.  Secured loans tend to have lower interest rates, because you have put something up for collateral, such as a car.  Unsecured loans do not involve collateral, and have higher interest rates than secured loans.

Financing Options for Medical Expenses

Some medical professionals and facilities offer in-house financing for medical debt.  While financing the loan directly from the provider may seem like a good idea, carefully check the terms and conditions before applying.  Many of these financing options include very high interest rates and fees, making it a poor financial decision.  In most cases, a personal loan will have much more favorable interest rates and loan conditions than the financing options available through a medical professional or facility.  If your medical provider offers you financing, request information and compare their terms to the loan terms offered by different personal loan companies.

Medical debt can be an overwhelming burden, particularly if you are sick and undergoing treatment or trying to recover from an illness or injury.  A personal loan can be a solution that helps avoid these bills going into collection and damaging your credit rating.  If you have medical expenses, consider a personal loan as one way to pay off your debt and get your financial life back on track.  Contact us today to learn more about our personal loan options and to see if you qualify for a loan!