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Woman wondering how she will cover the cost of her medical treatment

Medical Debt: How Medical Loans Can Help

Medical debt is one of the biggest forms of debt people experience in the United States. Thankfully, there are loans available to help those who need treatment acquire financing for medical treatment or pay off debt caused by medical treatment. 

According to the Survey of Income and Program Participation, there are solutions for you if you find that you are part of the 23 million people who owe significant amounts of medical debt. Read on for more information on how medical loans can assist you with your medical debt

Medical Debt: How Does It Happen?

Unfortunately, even those with great insurance plans often have to cough up thousands of dollars for unexpected medical bills. Often, these bills can be challenging for people to pay back on top of the other expenses they may have. 

The Kaiser Family Foundation reports that a survey from March 2019 found that 1 in 4 adults said that they have problems paying back medical bills. 

An analysis from the KFF published on their Health System Tracker titled “The Burden of Medical Debt in the United States” states that 1 in 10 adults, or 23 million people, owe medical debt. That includes about 11 million people who owe more than $2,000, with 3 million people owing more than $10,000. 

Because of this, many people find themselves sucked into a hole they can’t climb out of. This leads to more and more individuals delaying medical treatment due to finances, sometimes leading them to become even worse off. 

As these numbers grow at record rates, many have found that they have an extreme amount of debt they cannot pay off or cannot pay for the expenses upfront to stay ahead. 

Thankfully, loans exist to help people with this. 

What is a Medical Loan?

A personal loan is taken out for financing or paying off medical treatment or debt, and  can be used for debt, elective surgeries, emergency procedures, IVF, or more. 

Medical loans are often unsecured, so you won’t have to worry about risking your home, car, or other necessary collateral in the name of your health. These types of loans are usually the best for those with good credit scores since being unable to repay the loan can hurt you. 

If you need help with a medical loan and find that you cannot get an unsecured personal loan, secured medical loans are also available. This means that you can offer collateral in exchange for the loan. But unfortunately, this means you can lose it if you ever find that you cannot pay back the loan. 

How Do Medical Loans Work?

These loans can be acquired by applying online or at a financial institution. You may find that some lenders will allow you to get prequalified, enabling you to see available rates and terms based on the financial information you provide. 

You will need to provide salary verification, a credit check, and other required information. 

Once approved and having acquired funds, you’ll have to make fixed monthly payments until the loan is paid back in full. 

Who Offers Medical Loans?

Most online lenders, credit unions, and banks offer some loans used to cover medical expenses. Additionally, you may find that some individual healthcare providers may offer loans used to cover medical costs. 

Simple Fast Loans offers multiple options that can be used as medical loans, including installment loans and lines of credit. 

The Advantages of Medical Loans

Unfortunately, no one can completely prevent illnesses, accidents, or other emergencies. As a result, many Americans have accumulated significant medical debt from which they are unable to recover.

So, what are the benefits of getting a medical loan?

Fast Funding

Often, patients can be turned away if they cannot acquire funds for payment. However, if you require critical medical care, you likely need to have it done soon. Depending on where it is acquired, a personal loan can be disbursed to you in a matter of days. 

It can Forestall Default

Although you always hear that taking on new debt to settle old debt is… less than ideal, it can sometimes be better than allowing old debt to become more delinquent. 

Although medical providers take longer than some to send your debt off to collections, it can tank your credit score in one swift motion. 

If you can take a large, looming debt load and switch it for one you’ll be able to pay off monthly in smaller amounts you can plan for, you should take it. 

Flexible Use

Whether you are trying to pay off medical debt, paying for treatments and procedures not covered by insurance, or even travel expenses acquired during treatment, you’ll be able to use your personal loan. 

You Won’t Have to Choose Between Treatment or Paying Off Your Debt

Reports indicate that many people with large amounts of medical debt will try to put off seeking treatment for health issues for as long as they can to get their debt paid off.

Choosing between medically necessary treatments and paying off your debt shouldn’t be hard.

Medical loans can make medical debt easier to take on.

Variety of Loan Terms

Depending on where you go for your personal loan, you’ll have various repayment term options. Often, these can range from 36 to 60 months and can be selected depending on what best suits your needs. With a personal loan, you’ll have the same payment each month at the same time, so you’ll be able to budget accordingly.  

Cheaper Than Credit Cards

Charging medical bills to a credit card can be highly damaging to your credit if you can only make the minimum payment each month.

Although emergencies happen and you may find you need to put a medical expense on a credit card, you could face years upon years of debt.  

Other Types of Loans to Help

Other loans are available to those who need them, including lines of credit and installment loans. 

Simple Fast Loans offers both options, getting you the cash, you need fast, so you won’t have to deal with the complicated process of taking out a personal loan. 

What is an Installment Loan?

An installment loan is an agreement involving a loan that will be repaid over time. A set number of payments are scheduled for a day of the month.

Personal loans can sometimes be a hassle to apply for. However, Simple Fast Loans offers outstanding installment loans that will allow you to avoid the often-complicated process, getting you your cash fast.

Advantages of Installment Loans

Installment loans may be one of the best ways to pay off your medical debt. Simple Fast Loans makes it easy to do so, offering loan amounts of $200-$3,000 with flexible loan repayment periods.

Additionally, Simple Fast Loans offers a fast, easy application process and the ability to make your loan decision instantly.

What are the details?

Your loan amount will be calculated by your income and ability to repay the loan. Also, the maximum amount of money you can get depends on the state you live in.

What is needed to get an installment loan?

Getting an installment loan through Simple Fast Loans is a quick and easy process. Thankfully, you only need a few simple things to apply online:

  • Valid social security number
  • Phone number a representative can contact you at
  • A valid government-issued photo ID
  • An active checking account where your Simple Fast Loans installment loan can be deposited.

What is a Line of Credit?

A line of credit is credit extended by a financial institution, such as a bank, to a business or individual that allows them to draw money from it when the customer needs it.

Simple Fast Loans offers lines of credit to people who need extra cash for medical bills or emergency funds for a serious health issue.

The line of credit is much like a credit card or flex loan and is custom-made for you. It allows users to borrow whatever they need up until their credit limit. After that, although they are approved for a certain amount, they can only use what they are approved for.

Advantages of a Line of Credit

Individuals who need cash to pay off medical bills or access to emergency funds to pay for necessary surgeries will be able to draw funds from their line of credit up to their credit limit.

A line of credit gives people more options for cash advances and is easy and quick to apply for, so they can get the money they need quickly.

What are the details?

To get a line of credit from Simple Fast Loans, you must have a valid driver's license or state-issued ID and a checking account where most of your income goes.

When it comes to how much money you may borrow, there are no limits to the number of withdrawals you make until you reach your credit limit.

Your income and credit score, as well as the laws of the state where you live, will determine how much credit you can get.

How To Compare Medical Loan Lenders?

As there are many lenders, shopping around for the right medical loan that will fit your specific situation is essential. Here are a couple of things to keep in mind:

Repayment Terms

Most lenders offer repayment terms of one to seven years, depending on the lender. When choosing a repayment term, it’s usually best to choose the shortest term you can afford. However, Simple Fast Loans offers flexible repayment terms to determine what works best for you.

Loan Amounts

The loan amount will vary depending on the lender. If you are trying to pay off massive medical debt, you may want to shop around for the best lender that will provide you with the loan amount required to pay off the debt.


Some lenders will charge you fees for anything, including getting the loan or paying it off early. Check with the lender you’re looking at to see if they charge any fees.

Simple Fast Loans does not charge you for paying off your loan early.

What Not to Do When Faced with Medical Debt

If you’re faced with an ever-growing mountain of medical debt that you don’t think you’ll ever be able to climb over, just know you’re not alone. So many people are faced with this reality every day.

Here are two things you should never do when faced with medical debt:

Allow the Debt to go to Collections

If you’ve been ignoring the medical bills coming to your door, you may receive a notice from the provider letting you know that your medical bill is now overdue. Unfortunately, you may find that you get a few of these. At this point, you’re in danger of your debt becoming delinquent.

If this happens, a provider will either have their internal collection department call you to try to acquire their money, or they’ll sell your debt to a third-party collection agency that will start trying to get in contact with you.

At this point, it may be easy to ignore it, hoping it’ll just go away. But, unfortunately, it won’t.

Once your account goes to collections, you’ll likely see a drop in your credit score, and the mark will stay there for seven years.

Use an Existing Credit Card to Pay Off Debt

Using a credit card to pay off your debt may sound promising, but it can lead you into a deeper and deeper hole. It can hurt you more financially than using a loan to pay off your medical debt.

Unfortunately, credit cards often have higher rates than loans and can take a long time to pay off completely, hurting your credit more than a loan can. This is because you should be paying off your credit card each month, while with a loan, you’ll have a fixed repayment amount each month.

Using a credit card to pay off your debt can become a costly way to reduce your debt. That being said, some credit options are better suited for medical use.

Other Ways to Pay Off Medical Expenses

It’s easy to panic over medical bills when facing the mountain of debt you may have. You may find that you must take out a loan to pay off current medical debt but want to find ways to prevent medical debt buildup in the future. Alternatively, you may find that you want to avoid taking out a loan altogether and are looking for other options available to you.   

Here are some options:

Emergency Medical Savings Fund

Even if you must take out a loan to pay off your medical debt, starting a medical savings fund is critical to staying on top of future medical issues.

This could be a separate savings account, or a Health Reimbursement Arrangement (HSA) offered by your employer. Additionally, you can also see if you qualify for a Health Savings Account, where funds can be withdrawn to cover qualifying medical expenses and are not subject to federal income tax.

A medical savings account is essential for avoiding future debt accumulation.

Negotiate With Providers

Some providers are happy to negotiate with patients and patient advocates, especially when it comes to charging off a debt completely. Here are a few things you should consider when negotiating with your healthcare providers:

  • Payment plans- One of the most harmless questions you can ask your provider is if they offer a payment plan. You never know; they could accept payment on a set schedule that will work better with your budget.
  • Income-based hardship or financial assistance- check to see if your provider offers any income-based financial aid, as it will be easier on your wallet than a payment plan.
  • Check for billing errors- Flag potential billing errors you find. For example, if you find that your provider’s fees are wildly more than other providers around you, they may offer to reduce your bill.

Use a Medical Credit Card

A medical credit card is a niche card specifically created to help with out-of-pocket medical expenses.

These credit cards usually have 0% APR, are better for your wallet, and are safer to use than regular credit cards.

Final Thoughts 

Sometimes there is no way to truly plan for a medical emergency, as accidents and major illnesses can happen at any time. No one should ever have to consider dealing with a severe medical condition rather than add to the mountain of debt they already have. 

Lenders like Simple Fast Loans are available to help people manage medical debt and keep them afloat when emergencies arise. 

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