Ways to Finance Medical Bills
Addressing your health care needs can leave you with significant expenses. If you do not have insurance, you can face hefty bills that you may not know how to cover. Even with insurance, you can owe large deductibles or require procedures or medications not covered under your policy. Medical financing can help you pay the costs and get your necessary treatment. You can get funding for your medical bills from a variety of sources.
If you have 401(k) retirement savings through your employer, you may be able to borrow funds from your account. Make sure you understand the repayment terms. If you do not remain working for the company, you will have to pay the entirety of the loan within a set timeframe. The financial institution will penalize you for early withdrawal if you do not repay the borrowed amount.
Unsecured loans from online lenders typically offer faster approval, better rates, lower fees and longer repayment terms. Lenders offer better rates for people with good credit scores. The longer payoff time will decrease your monthly payments but increase the interest you owe over time.
Peer-to-peer funding involves getting a loan from an individual. With this method, financial institutions do not provide you with the funds. Instead, they facilitate the lending process. People invest money to fund loans and earn interest through the repayment process.
You can typically take out loans for medical financing from local banks and credit unions. Many medical practices offer loan options as well. You can explore these personal loan opportunities to find the funding you need.
Medical Credit Cards
Sign up for a specific-use credit card that can serve as a payment plan for your health care bill. Often, your provider has this option available in the office and can help you apply or explain how. Before pursuing this finance method, review the interest rate, promotional periods and minimum payment requirements. Compare the details with regular credit cards to find the right one for your circumstances.
Know the Details
The stress of large medical bills can cause you to rush into decisions that may not be good options. Take the time to review and compare your available lending choices. Find out the interest rates and fees. Determine if lenders offer variable or fixed rates and know the loan repayment term. Additionally, learn how fast the application and approval times are to see if loans meet your requirements.
You have various options for paying expensive health care costs. Analyze the factors of each type to find the best medical financing for you.