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