Connecticut Short Term Loans

What Options Do You Have To Finance Medical Expense

Sadly health insurance does not cover everything we need, such as elective medical procedures and sometimes even dental work. Sometimes we do not see these as “elective medical issues” but rather a quality of life issue that needs to be addressed, but how do we manage to pay for it? You can always opt for a personal loan to begin your much needed medical help or procedure. If you have bad credit however your options are lessened, but the good news is that you have for options when it comes to financing your medical needs.

Your four financing options each have their pro’s and con’s, you will have to decide which method works best for your unique financial situation and needs. You can opt for a personal loan, these will have higher interest rates however, so you need to make sure you can actually repay the debt without affecting your ability to make ends meet. Your next option is an installment loan on your home equity if you already own a home. A home equity line of credit is a good way to go as the interest rates will not be as bad. Your next option is a title loan, but you need to own a automobile for that. The drawback with a title loan is if you miss your payments on it you can lose your car.

Your last loan option is the least attractive of all, taking out a payday loan. Payday loans have anywhere from 300% APR to as high as 800% APR. Payday loans are basically predatory lending. If you have any other options besides a payday loan you should take it rather than opt for this. You can always try a payday loan alternative like the loans mentioned on this website. If you do opt to go for a payday loan make sure you can make the payments or else you will need to roll that payday loan over and over again, trapping you into a debt cycle. Also beware of any payday loan companies operating on Native American reservations as these loan companies can skirt any laws designed to protect you.

The best option if you have a lot of cash expenses for your medical care would be a FSA, otherwise known as a Flexible Spending Account. This is the best medical financing if you have bad credit. How it works is you make an annual contribution of up to $2500 ti your employers open enrollment period. One hundred percent of any medical expense come of of this pool, and best of all its tax deductible. It is funded with pretax dollars, and the entire pool is a tax write off. Using an FSA is much better than a tax write off due to a few unique aspects. First of all since its pretax dollars you are saving money with each dollar put into the pool. You also reduce the amount of FICA tax you owe by doing this so its win win. You cannot beat this option when it comes to financing your medical expenses.

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Connecticut Short Term Loans