You can get a medical loan like any other type of personal loan, through a bank, credit union, or online lender. Search for the best interest rates for your financial situation using the LendingTree personal loan marketplace. Or, you can see if the medical provider, insurance company, or collection agency that has the debt will accept a lump sum of part of the balance and forgive the rest. Many medical loans are unsecured, meaning you don't have to risk your home (or anything else) in the name of your health.
You can use your home equity to borrow at lower interest rates than a personal loan is likely to offer you. Your hospital's billing department may be willing to negotiate an interest-free payment plan to pay off your medical debt. You might be surprised to discover that working out a payment plan directly with your provider may be the most affordable medical loan funding option. Alternatively, you can hire the services of a medical bill promoter, someone who knows medical billing very well and who will work to negotiate with your healthcare provider on your behalf.
Personal loans are unsecured, meaning they don't require collateral and can be used to pay for just about anything, from your own medical bills to living expenses during recovery time. While the cost of elective and preventive procedures may seem prohibitive, remember that taking good care of your health now can help prevent a serious illness in the future that results in tens or hundreds of thousands of dollars in medical bills. For example, medical credit cards with an introductory APR offer of 0 percent for the first year may charge interest retroactively if the full balance is not paid off before the 12 months have passed. Personal loans for medical expenses are backed by a promise to repay the lender; as a result, interest rates may be higher than those of a secured loan, which uses an asset as collateral.
Some lenders who otherwise wouldn't accept candidates with poor credit scores may allow you to get a secured loan for medical expenses, which may be a good deal, but you'll have to put something valuable in collateral. For some, medical loans aren't the right option, either because of lack of time or because of credit requirements. However, the interest rates on medical credit cards may be higher than those of other credit cards; some lenders even take advantage of unwary patients by advertising in doctors' offices without openly disclosing the conditions. Other ways to manage debt include trying to work out a payment plan, hiring a medical bill lawyer, or requesting a debt settlement.