Four Ways to Finance Medical Bills and Health Expenses

When you are living with a medical condition or disease that requires regular visits to various doctors, or have a sudden health concern that needs to be addressed quickly, medical bills will begin to pile up.

While your medical insurance likely covers most of your normal expenses, when it comes to specialty issues, insurance companies don’t always cover these kinds of doctor visits or procedures.

What do you do when you receive that bill in the mail for thousands of dollars for a procedure that you couldn’t live without? At the end of the day, your health is the number one priority, and these overwhelming medical bills, fortunately, can be paid for in many different ways.

Ask about in-house financing options

One of the most common ways to finance your medical bills is working right with the source. That may be either your insurance provider, the medical institution itself, or both. Many hospitals, private physicians, and dentists offer a repayment plan that works for you.

The first rule-of-thumb in this scenario, is never take the billed amount as the amount you owe. The doctor that billed you is simply subtracting what the insurance company said they would cover from the total. Look closely at the benefits th at your insurance offers. Then, try and negotiate with your insurance what they will cover and see if there is any leeway for the out-of-pocket amount. Also, always be upfront about your concerns about paying this off and realistic with what you can afford to pay.

Once you have come to terms with your bill, this is when you can look into financing options with the medical institution. Ask what options they are willing to offer you when paying the entire amount upfront is out of the question.

Secure a personal loan

Another option is applying for a personal loan. There are many types of personal loans, and the best part about them is that they are unsecured. Meaning, you can use them for almost anything. One of the more common uses being debt.

When your medical bills are stacked miles high, getting a personal loan may be the most efficient way to consolidate your expenses. Especially if you are dealing with unexpected or emergency procedures.

A personal loan can be as low as $1,000 or upwards of $100,000. Ultimately, you choose what you’re asking to borrow. For example, maybe you have some money available, but not the entire amount owed. You’re able to apply for just a portion of your medical expenses.

As with any loan, your monthly payment will reflect your current income, debt-to-income ratio, and credit score. However, the process is generally flexible when it comes to picking a payment plan that works best for you.

Consider a home equity loan

The next option to pay off medical bills quickly and at one time, so to speak, is with a home equity loan. When you own a home and are paying your mortgage down, you gain equity. As a perk to being a homeowner, you can access this equity in the form of a loan if you’re in need of extra money.

Matter of fact, you may have the opportunity to use up to 85% of your home’s equity in the form of a home equity loan. In short, you take the price of your home, subtract it from what you have paid towards that balance already, and the difference is your built equity.

This option, again, will all depend on your payment history, current income, credit, and equity gained. Always talk with your bank or credit union to see if this is the right option for you.

Look into using a credit card

You can also put any medical expenses on a credit card. Sometimes, your doctor’s office or dentist will have in-house credit cards that they can submit on your behalf that offer a 0% interest rate promotional financing period. However, if you can’t repay the bill within that period, the interest rates usually turn out to be higher than an everyday credit card.

Given that 70% of American households have a general-purpose credit card, odds are you already have one in your wallet, too. While there are thousands of different credit cards to choose from, each offers something different for the user.

Whether it is a percentage of cashback on purchases, miles for traveling, or run on a points system in exchange for cash, you should tap into what your card offers you specifically. Also, look into the interest rate. Depending on what you find, the benefits earned might outweigh the interest you may need to pay when paying the total off over time.

Look closely at all of your options, and don’t forget to always negotiate your medical bills. No matter if it’s financing through your doctors, using a personal loan, tapping into your home’s equity, or just using a credit card. Seek help and dive into your options to ensure you are making paying off your medical bills realistic for you.