Medical bills are very often the source of people’s debts (and worries). Even more than a half of the debt on people’s credit reports are medical expenses. Lack of health insurance and sudden need for some serious treatment can really bury down our finances. What can be the solution here? For example, personal loans.
Start with these
There are things you should do before you begin looking for ways of paying your medical bills off.
- Check your bill for errors. You should know that even 90% of medical bills can have some errors. If you do not want to pay more than you have to, make sure that everything is correct.
- Look for financial aid. Not so many medical offices can provide financial aid, but nonprofit hospitals have to offer such support. For example, if you present your financially difficult situation, you can be offered with 0% interest rate. Apart from this, you can ask about a possible discount (for instance when you pay in full) or a long-term repayment plan.
- Check whether your insurance coverage is correct. Read the explanation of benefits and find out if the payments have already been credited.
The next step is to consider options of repayment you have and choose the best one. When you are offered with a certain repayment plan, you have to check: what the interest rate is, how long your repayment will last, and how much you will have to pay per month. Then, think if you are able to meet such conditions.
If you cannot afford to pay the debt in full, you are not given a repayment plan option or you are not able to realize the plan, you can pay the debt off using your credit card or by taking a personal loan. If you can choose between a repayment plan and a personal loan, check which of them has lower interest rate and longer repayment period.
Generally, personal loans can offer lower interest rates than credit cards, unless you have a good credit and thanks to it, you can count on a lower rate. However, the huge disadvantage of using a credit card in this case is the limited period of this promotional lower interest rate, lasting usually between 12 to 18 months. It would be perfect if you could pay everything off within this time, but if not, you would just have to pay higher interest rate after the promotional period.
When it comes to personal loans, they usually have fixed interest rates and fixed repayment periods which last between 12 to 48 months. In this way, you will find it easier to carry this “burden”. The fact is that the specific loan terms depend on you and your credit. Usually, you need to have a good credit to receive a personal loan.
Personal loans can help you pay medical debts and “repair” your situation. Therefore, devoting some time to find a good loan is really worthwhile and profitable.