Could a Personal Loan Be Your Ticket to Paying Off Medical Debt?

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It can be a great way to get a handle on those bills.

Important points

  • Medical debt is forcing Americans to make drastic changes to the way they spend and save.
  • If you’re juggling medical bills, it pays to consolidate that debt with a personal loan.

Health care can be expensive, even if you have health insurance. Between premium costs, co-payments, deductibles, and uncovered benefits, it’s easy enough to get into medical debt if you get sick or get injured out of the blue.

Nowadays, medical debt forces people to make difficult decisions. In a recent Discover survey, medical debt has forced 32% of Americans to pause their retirement plans and forced 36% to wait to top up their emergency funds. And it’s also forced 27% of Americans to stop paying other bills.

If you have medical debt, you may struggle to keep up with your various payments. And this is where a personal loan could help.

Discover: These personal loans are best for debt consolidation

More: Pre-qualify for a personal loan without hurting your credit score

The advantages of a personal loan

A personal loan allows you to borrow an amount of money for any reason. You can take out a personal loan and use the proceeds to renovate your home, repair your car, or consolidate your credit card balance. Similarly, you can use a personal loan to consolidate your medical bills and make them easier to pay back.

Let’s imagine you’re currently paying seven different health bills, each with its own due date. Juggling those payments and remembering when bills are due can be a challenge — especially when you have other things to focus on in life. The advantage of a personal loan is that you have to make a payment every month. And because personal loans come with fixed interest rates, your payments are predictable.

Meanwhile, personal loans usually come with competitive interest rates. Admittedly, consumer borrowing rates have risen across the board these days due to the Federal Reserve’s recent action to raise interest rates. But if you have strong credit, you can secure a competitive interest rate on a personal loan, making your payments reasonably affordable.

Don’t let medical debt turn your life upside down

You may need to put certain goals on hold, e.g. For example, save a down payment on a house while you work to pay off your medical debt. But one thing you don’t want to do is fall behind on that debt as it could hurt your credit score and lead to a world of problems.

Taking out a personal loan to pay your medical bills leaves you with a single monthly payment to work into your budget. And that might help relieve stress at a time when you’re also trying to recover from an injury or illness that caused you to rack up medical debt in the first place.

However, before you take out a personal loan to pay off your medical debt, check with your providers and see if it’s possible to negotiate that debt down. Some may be willing to work with you. But once you have your final numbers, it’s worth checking out whether a personal loan can make your healthcare debt easier to manage.

The Best Personal Loans of Rise for 2022

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