NEW YORK, February 28, 2023 (Newswire.com)
Credello: Studies show that many Americans are dealing with medical debt in 2023. That number has declined since the Biden-Harris administration took over. However, medical debt remains a serious issue, and it’s one that you may face this year.
If you’re dealing with medical debt, you might consider some of the personal loan pros that exist. We’ll talk about personal loans right now. We’ll also discuss some other options if you have medical debt that you’re carrying at the moment.
The Personal Loan Option
Your medical debt might be only a couple of hundred dollars, or it may be in the thousands. If you have only a little medical debt, you can probably save money from your paychecks and pay it back sooner rather than later. If you owe a larger amount due to medical entities, though, it’s worth considering personal loans.
Banks and credit unions grant personal loans, usually to individuals with good credit. If you approach a lending entity, they will want to know about your employment situation. They’ll also look at your credit score. These factors, taken together, will determine whether you’re a suitable loan candidate.
If the lending entity grants you the loan, you can take that cash and pay off your medical bills. When you do, the hospital, clinic, or doctor’s office to which you owe money will stop hassling you for payment.
At that point, you will have the personal loan to pay back. You must do so expediently since the lending entity will charge you interest on that loan.
When Is a Personal Loan the Best Choice?
If you have medical debt, paying for it with money from a personal loan might not be ideal since you’ll pay interest on that loan along with the principal. However, it’s usually better than paying off medical debt with a credit card.
That’s because, with a credit card, you might pay as much as 30% in interest or possibly even higher. You can often get much better interest rates with personal loans. You might get one with an interest rate of 8% or even lower in some cases. The lender will typically give you a better interest rate if you have a higher credit score.
What Are Some Other Options?
If you want to avoid getting a loan to pay off your medical bills, you can sometimes appeal to the medical entity to which you owe money. In some instances, they’ll reduce your bill if you plead poverty.
If that doesn’t work, you might ask family members to borrow money. That only works if you have a financially secure family member who’s feeling generous, though.
You might also sell some nonessential possessions. You can always look for a second job, or you might ask for a raise at work. If you can’t get a raise, you can start looking for a better-paying job in your field with a different company.
You Have Options for Paying Off Medical Debt
If you’re dealing with medical debt, you’re not alone. Millions of other Americans are in similar situations. You might approach a lending entity and get a personal loan. You can usually secure a better interest rate than if you paid off your debt with a credit card. You have the best chance of getting a personal loan with a low interest rate if you have at least decent credit.
You might also ask family members if you can borrow money. You can look for a second job. You might sell any nonessential possessions to raise the cash, or you may ask for a raise. If your boss doesn’t grant you one, you can update your resume and look for higher-paying positions within your field.
In time, you should be able to repay your medical debt and find yourself on stable financial footing again.
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