Personal loans are a legitimate way to pay for health expenses or consolidate medical debt, but there are better alternatives, so you should consider this option last.
One advantage of a personal loan is that it is usually unsecured, which means the lender can’t repossess your car or foreclose on your house if you used those assets as collateral.
Most of the time, personal loans also have a fixed term, ranging from one to seven years, for example, which allows you to budget for a monthly payment and pay off the loan within a reasonable amount of time.
Of course, unsecured loans pose a higher risk for lenders, which means you’ll pay a higher interest rate. If you have excellent credit you can usually secure an interest rate of between 10% to 13%, but rates as low as 5% or 6% with automatic payments are possible.
Those with poor credit normally end up paying interest rates in the 28% to 32% range, but it is possible to see rates as high as 36% in many states.
Consider Hiring a Medical Bill Advocate
Medical bill advocates offer a variety of services, including verifying that your bill is correct, getting incorrect charges removed, negotiating your payment to lower the cost of the bill, and persuading your insurance company to cover more than the initial claim amount.
Medical bill advocates charge a fee for this service, either as an hourly rate or a percentage of the amount they save you.
But if you have a large medical expense, the cost may be well worth it. You may be able to find an advocate through your employer as a benefit.
Look Into Payment Plans
Medical providers want to get paid for the work they do. As a result, some billing departments may be willing to offer payment plans.
The terms will vary from provider to provider; some charge zero interest while others will charge some. If you can’t get your bill discounted, an interest-free payment plan may be your next best option.
Use a Credit Card
If you’re able to pay off your medical expenses within the next 18 months, you may want to consider applying for a credit card with a 0% introductory APR on purchases and use it to pay off your medical expenses.
Unfortunately, if you’re not able to pay the balance before the introductory offer period ends, you’ll have to pay interest. Be cautious when using a credit card to pay for medical expenses. APRs can end up being high. Thank you. Visit our blog page for more posts: rockfordtitlelendersblog.weebly.com/blog
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When you need money fast, you turn to wherever you can get it. After all, you have a life that you need to keep on track. If you need a little extra to cover rent, groceries, a surprise auto repair, a sudden illness, a late paycheck, or anything else that empties your bank account fast, you may consider a title loan.
While most people would consider themselves pretty financially savvy, I'd say that can be attributed to the fact that no wants to admit they're bad with money. As cash rules almost every decision we make, it can be tough to swallow when we haven’t held ourselves to the best standard.
Here are a few financial tips for you to use.
Learn how to use a credit card the right way
This is something that we probably should’ve listened to the wisdom of our elders more, but then again, sometimes it’s best to learn on your own.
As creditcard.com notes, while younger generations tend to utilize their credit for clothes, entertainment and gas, older generations use it for travel and major repairs.
Granted, having a budget and sticking to it with a credit card can be a good way to build your score, but using your card like boomers is an effective strategy.
Build your credit
Your credit is the number-one key you have to financial freedom, so utilize it wisely. As CreditRepair notes, there are numerous ways you can start on this, as it’s never too early to start thinking about your credit.
Report your rent to credit bureaus
Although a relatively new development in the credit reporting world, according to NerdWallet, nearly every major credit bureau allows you to report your rent. Although less than 1 percent of credit files contain rental information, this can increase your credit score tremendously.
Hold off on buying a car (even if you can afford it)
While a lot of folks tend to follow the 20 percent rule (that is, only dedicate 20 percent of your income to a monthly payment on a car), even if you can afford that, it’s still not your best investment.
First, cars are depreciating assets, meaning as soon as you drive off the lot, it’s automatically worth less than what you paid.
Additionally, as you never know what’s going to happen with your car (whether it’s new or old), the unexpected maintenance or expenses are going to cost you regardless
Stop spending so much money on socializing
Like most millennials, I too have fallen victim to spending money for what I consider “the short term.” You know, things like going out to eat or going to shows, which for the time being is great, but as you get older, you realize this money is well spent other places.
Plus, as millennials spend nearly 44 percent of their food budget on going out, cutting back can be an excellent way to save money. So stay in your parents' basement as long as possible.