It’s a fact of life.  Emergencies happen.  You or someone in your family gets in a car wreck or has an accident.  Now you are faced with medical bills that stretch your budget to the breaking point.  Emergency medical financing with a medical loan may be exactly what you need to cover the expenses.  Depending on the illness or the injury, charges can range from emergency room visits, EMT & ambulance service to treatment, hospital stays and physical therapy. For a normal family, this is a big hit to the pocketbook.

In its report, “Survey of Household Economics and Decisionmaking”, the Federal Reserve identified five areas that cause concern with the financial health in American households.  The top item was that “40% of Americans don’t have the cash to pay for an emergency expense”.

What Is Emergency Medical Financing with a Medical Loan?

In essence, it is a personal loan that is used to cover emergency medical expenses.  When emergency happen and there aren’t funds available, the bills often go unpaid.  This is a leading cause of bankruptcies in the US.  Even with insurance, uncovered expenses and copays can create an ongoing burden to most budgets.  To prepare for the inevitability of an emergency, you can create a savings account dedicated to these events.

This is prudent but the reality is that even with savings, some medical emergencies will exceed the amount that you have worked hard to save.  In this case, you may want to consider emergency medical financing with a medical loan.  Even if you have bad credit, you can find a loan for medical bills.  In medical finance, there are a secured and unsecured medical loans, medical credit cards and 401(k) loans available.

How Does Emergency Medical Financing with a Medical Loan Work?

Loans for medical bills are like regular personal loans.  Generally, the fees and repayment schedules are the about the same.  With any loan, it’s important to research various lenders so that you get a loan with an interest rate and repayment schedule that suits your budget.  Also, ensure that the lender is credible.  You don’t need to be stuck repaying a high interest loan faster than you are able to.

Another Saving Option

If you get emergency medical financing with a medical loan, you now have the leverage to negotiate with the doctor, surgeon, anesthesiologist or whomever is involved.  With cash in hand, they know that they will get paid more quickly so will often lower the price for cash.

Other Uses for A Loan for Medical Bills

While many people seek medical finance options for emergency situations, they can be helpful in non-emergency situations.  A lot of people use medical loans for expensive dental procedures.  They are also used for elective surgeries such as cosmetic and weight loss medical procedures.  All of these procedures as considered elective and they are costly.  Many dentists and physicians offer financing in house so check their first before pursuing a personal loan.

Conclusion

In many situations, emergency medical financing with a medical loan is a good idea.  Many personal loans with offer an interest rate of only 5% while your credit card may charge 16% or more.  As personal loans range in amounts of $500-100,000, the interest rate and terms are very important.  Creditry, Debritry and Budgetry are a trio of websites to help you with your credit, debt and budget, respectively.  When you decide that you need emergency medical financing with a medical loan, visit a site like Loanry.

There you can search for lenders that are a good fit for you and your family.  Be advised that none of these sites are lenders themselves.  Loanry acts as a clearinghouse of information on available lenders.  They also provide educational information related to loans and credit. When you need the help, they make it easy to find several potential lenders, compare their rates and terms and learn what to look out for.  No one wants an accident to occur but when it happens, there’s a place to turn to.