People have to have health insurance in our country. However, it doesn’t mean every medical expense will be covered by the insurance company. There are situations when you have urgent procedures or unexpected bills that you just can’t afford to cover.
In fact, not every American consumer can pay all of his medical bills from his own pocket. Many people have to decline or delay various treatments just because they are unable to pay for them straight away.
Yet, it’s essential to think about your health and emergency procedures can save lives. So, applying for a loan for medical bills may be a suitable solution for the times when you are short of cash and your insurance doesn’t cover certain costs. Before you opt for this lending solution, look through all the nuances to define the best option to finance your urgent medical needs.
What is a Loan for Medical Bills?
Let’s start from the very beginning. What is a medical loan? It is just another form of a personal loan taken out by borrowers for their needs. This lending option is suitable for specific medical purposes as it is designed to help you finance different treatments, procedures, IVF costs, surgeries, and other necessary payments. This is a widespread solution for consumers who can’t manage their own expenditures or don’t have a savings account to take cash from.
A loan for medical bills is an unsecured borrowing option. In other words, it’s not backed up by any collateral so you don’t risk losing your auto, or another valuable asset. In this case, creditors face more risks of consumer default so it’s necessary to search for better terms and lower rates.
I need money desperately today, what can I do? Don’t worry if you face a sudden emergency or your relative needs medical assistance. Getting an unsecured lending option for medical needs is common today especially for people with good credit history.
Pros
• Quick funding. Whether you need immediate cosmetic or medical care, taking out a small personal loan for your basic needs is quite easy. Many finance-related service providers offer fast funding so that borrowers may obtain the cash within 24-48 business hours.
• Cheaper than credit cards. It may be tempting to use your credit card and withdraw the necessary funds from the nearest ATM without a loan application. However, the interest rates for such cards are usually higher and may reach 16 percent. At the same time, a loan for medical costs may cost you less if you do some research and compare rates.
• Flexible terms. Another benefit of this lending solution is the ability to make regular monthly payments with a fixed rate that won’t change over the lifespan of the loan. The repayment schedule is typically flexible allowing consumers to repay the debt within 36 to 60 months.
• Various needs. While your health insurance might not cover certain procedures, getting a quick loan gives you a chance to use it according to your personal needs and preferences. You may fund surgeries and various treatments or pay for travel and living costs connected with recovery.
Cons
• Limited assistance. Although it’s a suitable option for obtaining financial aid, this type of assistance may be limited in different lenders. The reason for that is the high price of certain treatments. Sometimes the loan amount you are given isn’t enough to cover all the expenses.
• High-interest rates. Apart from being an affordable lending solution, a medical loan may also be rather expensive for low credit holders. If you have dark spots on your credit profile or you’ve failed to repay the previous medical debt, you may face higher rates or additional charges.
Alternative Ways to Fund Medical Costs
Sometimes you may need to know alternative ways to cope with medical expenditures so that you have more options to choose from. Options like purchasing your medication from Canada. The recent survey of Kaiser Family Foundation and the New York Times admitted that 1 in 4 American consumers have issues paying down their medical bills. As a result, debt for medical costs is continuously rising across the USA. For those facing a life-changing illness, another option to pay off medical bills is through a viatical settlement.
Below are some of the most popular solutions if you don’t want to take out a medical loan or if your credit rating is too low to qualify for this lending option right now.
• Payment Plan. This is a widespread solution and you can always start by asking the medical office about payment plans they offer. When you are honest and talk about your financial issues to the doctor, he may allow you to opt for a payment plan. It is an affordable option provided that you have a stable income source.
• Credit Card. Another common option is to utilize your credit card for medical needs. There are zero-interest introductory cards with special offers for a certain time period. On the other hand, credit cards can often come with higher rates and fees compared to other lending solutions especially if you are in a state of an emergency and don’t have the time to search for the best offer.
• Tap Your Family or Friends. If you can’t qualify for a small loan or you don’t have a credit history yet, you may want to ask your friends and family to help you out. It may be rather embarrassing but failing to deal with a medical emergency may lead to major health issues. Health is really important so you should use all means and options to find the required sum.
In conclusion, medical costs can be really expensive while not every American can afford them. However, you shouldn’t postpone or decline emergency treatments as it may lead to worse consequences and even more expensive prices in the future.
Getting a loan for medical expenses is fast and secure today with a vast variety of creditors available on the market. It’s a great option for every consumer who doesn’t have an emergency fund. Select the desired lending solution and obtain fast funding. Take care of your health as it’s always easier to prevent illnesses rather than pay for serious treatments or surgeries.
