Costly Patient Financing Methods to Avoid

Patient financing can help you deal with an unexpected medical bill that you cannot pay outright. The least expensive option for patient financing is to ask the medical provider for a payment plan directly. Most health care professionals will provide you with this option, but some will refuse you. When this occurs, you have to seek alternative options. Avoid the most costly alternatives, such as:

  • Payday loans - Payday loans are the most expensive form of financing available to cover immediate expenses. While they may seem like a good idea to get over an emergency, you will end up owing more than you borrowed by a considerable amount. It is better to borrow the money from a friend or relative than to go to a payday lender. 
  • High risk personal loans - You may not be able to avoid taking out a high risk personal loan if you truly do not have other options. However, since high risk personal loans do not require collateral, the lender will charge high interest rates to protect against default. Where possible, it is better to work with a low-risk secured loan, such as a home equity loan, in order to pay the bills. 
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