Can I Get a Loan to Cover My Medical Expenses?

Medical emergencies are costly, even if you have the best medical coverage available. People who have no insurance at all are charged exorbitant fees-out-of-pocket-which can result in bankruptcy. For those who have coverage, co-pays and deductible costs can add up to quite a bit of money each year. It is no wonder that medical bankruptcies were the leading cause of personal bankruptcies during the year 2013, according to a survey conducted in 2013.

If you do not pay your medical bills, your creditors may harass you. Over time, it can give you a disastrous credit score. There are other options that you can take advantage of to obtain money to pay off your medical expenses.

Personal Loans Can Cover Medical Expenses

If your credit score is good and you have a steady income, you may be able to get a personal loan. If you are ill, though, you may be behind in your payments. If so, this may lower your credit score and cause you difficulty when trying to obtain a loan.

Personal loans, however, are a much better option than using your credit card to pay your medical bills. Personal loans generally have a much better interest rate than credit cards.

Some banks offer loans designed to help their customers pay their medical expenses. The Health Advantage Loan is an example of such a loan.

Home Equity Loans Can Cover Medical Expenses

If you are a homeowner, you can borrow by taking out a home equity loan or line of credit. With such a loan, your credit score will not be as much of a factor in obtaining a loan.

A home equity loan, however, is not without risk. If you cannot pay back your loan, the financial institution from whom you borrowed the money can claim your home.

A line of credit allows you to borrow only what you need at a given time. You will be approved for the maximum amount that you can borrow. This type of credit is more flexible than a line of home equity credit.

Credit Cards Can Cover Medical Expenses

If you have good credit, you may want to take a look at using a credit card to pay some medical expenses. Although in general, credit card interest rates are usually higher, you can pay for your medical treatment quickly with a credit card.

Compared with loan payments, your minimum payments will usually be less. There is a catch, however. If you only pay the minimum, you will pay much more interest over the life of the loan. It also means that it will take you longer to pay off the card.

Many banks and credit unions offer credit cards with low interest rates and no annual fees. Some cards are a better deal for people who pay off their balance each month, while others provide customers with low interest rates if they cannot pay off the entire amount in one month.

Health Savings Accounts Can Cover Medical Expenses

Your employer may offer an HSA account. If you have this option, you may want to take advantage of this benefit before you need to use the money. By planning ahead, you can save yourself the hassle of having to use loans or credit cards to pay for your medical expenses.

An HSA is a specialized savings account. Every month, your employer will deduct a small amount to put into your HSA. Over time, the amount can add up to huge savings if you become ill and are faced with medical bills.