Can You Use Personal Loans to Pay for Medical Bills?

In today’s economy, the cost of everything seems to be increasing at a constant rate. This is definitely true for the cost of medical treatment. The co-pays and out of pocket expenses alone will mount up quickly. Medical collections account for at least 20% of the reports on a person’s credit score. Medical bills also average about $600 in arrears for the average person who struggles with bill payments. People are reluctant to apply for a loan because they typically ask for a large collateral, or too much information is needed, and they are very time consuming. Getting a loan to pay for medical costs is a wise thing to do, and it can be simple and easy.

Personal loans are loans that generally require no collateral. The interest rate is a little higher than a mortgage loan, or an equity line of credit, but the process is much easier. Personal loans can range from as low as $1,000 to as high as $100,000 with a term as long as seven years to pay it off. Getting a personal loan to pay off medical bills will eliminate the bill and allow money to go towards other things before the first payment is due. Many loans can be made online. This process has made it much more convenient. Loan options include a Pay Day loan, Title loan, or personal and installment loans, all done privately online.

In many cases with online personal loans, the money is usually deposited into the borrowers account on the next business day. The expediency of these transactions means that peace of mind can be obtained almost immediately. The interest rate on a personal loan can range from 5% to 20% depending on a person’s credit rating. Paying medical bills sometimes becomes a monthly task just as the other regular bills. This is especially disheartening for the elderly who are on fixed incomes. It is much simpler to get a loan to pay these bills than to struggle with them every month. The loan payment will be less than all medical expenses combined, thus allowing for a financial freedom of sorts, and less stress on the individual.

Bill consolidation is recommended for people who want to decrease their monthly budget by eliminating medical expenses. Before paying off the medical expenses, check the insurance plan to make sure that they paid what they were supposed to. Then, check the bills that were sent to make sure that they charged an accurate amount. Sometimes, an individual will find that they have been over charged for a doctor visit, or a co-pay for a procedure. Double check all of the paperwork you have received before paying. Insurance companies and medical personnel can sometimes make mistakes. When borrowing money to pay off bills, make sure to use the most recent statement from medical billing offices. An all too frequent occurrence is receiving a statement that there is more money owed after the bill has been paid.