Should I Rely On No Credit Check Loan to Pay Medical Bills?
There is no doubt that short term loan is the best financial aid to look upon when someone runs out of the cash specially near the end of the month. An occurrence some emergencies such as medical are unavoidable and they require instant cash which can only be fulfilled via payday loans online. However, If you are short on savings and facing a big medical bill more than $1500, there are better ways to cover it than taking out a no credit check loan.
Why Should Not Pay For Medical Bills with Payday Loans ?
According to study by University of Chicago, 51 percent of Americans can take help of their savings accounts to face unexpected medical expenses even if they miss more than one paycheck. So what happens, if you or someone in your family needs to face emergency medical bill worth $700 even with insurance.
Many people who are struggling to handle such situations end up using no credit check loans as. But if you can, then you must avoid these types of short-term loans because they come with they are only suitable for shorter terms and shorter amounts up to $1500 generally, which means that you can end up applying for more than one loans and eventually may end into a debt cycle. Moreover, the medical bills may exceed this amount and term. So, you must consider other alternatives to handle medical financial emergency.
What are the Alternatives to Payday Loans To Face Medical Emergency ?
1. Confirm If The Medical Bill is Correct.If you are given a giant medical bill, the first thing you must do is to confirm if the bill is actually correct because 80% of medical bills contain billing errors. This usually happens due to miscoded procedures either due to technical error or human error. In addition more charges, miscoding can lead to the rejection of claim by the insurance company. So, if the doctor or hospital accounts gives you a bill showing a lump sum, ask them to provide a break down of the bill that lists all of the procedures and charges individually. Then carefully read through all the pints, making sure the items listed make sense and that nothing is duplicated. If you find any mistake on your bill, ask the billing department to remove it and issue a new bill. There is probability that you may pay off the new bill without borrowing money by any means.
2. Open a Health Savings Account
Health Savings Accounts are a great way to save for both expected and unexpected medical expenses. It allows the consumer to deposit 100% tax-deductible money into a savings account. When you use it to pay for a medical expense, the payment automatically becomes tax free. To be eligible in 2019:
- An individual’s health insurance plan must have a minimum annual deductible of $1,350 and maximum annual out-of-pocket expenses of $6,750.
- A family’s health insurance plan must have a minimum annual deductible of $2,700 and maximum annual out-of-pocket expenses of $13,500.
You can contribute a good sum of money each year to HSA which you can keep rolling it over year after year. The requirements and restrictions of HSAs are updated every year, but even if you no longer qualify for it, you can still use that money to pay for medical expenses until you run out of funds. Technically, once you saved enough to cover the medical expenses, you would never have to look into your bank account to cover expenses.
3. Negotiate a Payment Plan
If you cannot afford to pay the whole medical bill at once, then you can negotiate a payment plan. This eliminates the need of fast cash loans or soft credit check installment loans. To negotiate, you need to contact the billing department, a financial aid office, or a financial assistance office depending on the kind of healthcare you are dealing with.
On a whole, online short term loans is not a feasible solution for long term medical expenses, thus savings and above mentioned alternatives only can save you in such a situation.