Life is unexpected. There are certain things that you just can’t predict and when unexpected things happen, you understand how important it is to be prepared. Uncertainty is a harsh reality, especially when the life of your loved ones is at stake by occurrences such as sudden illness or accidents.
Such instances can empty your pockets faster than an all-out shopping spree. Hospitals charge for each day spent in care, with specific treatments being charged separately. In such situations people often find their backs against the wall, facing great difficulty in arranging the finances required for treatment.
Medical Loans – Why are they so important?
Medical loans are a critical financial aspect that many people take for granted. One of the reasons people can’t seem to manage their medical expenses is because they believe they don’t earn enough. Many people in the United States are living paycheck-to-paycheck and more than half of middle-class America has huge credit card debt.
So, what happens when an emergency strikes such as medical bills or the birth of a child? Will a medical loan be enough to cover all your healthcare expenses?
According to a study, a significant global increase in consumer indebtedness in the past two decades has led to the adoption of legislation related to bankruptcy. In 2007, more than 60% of the bankruptcy cases in America were related to medical expenses. Out of those cases, 92% had medical debts over $5,000.
Things you should know before getting a medical loan
Many financial institutions offer easy approvals for loans, but before you move ahead, make sure you read the terms of the agreement. For example:
- How much is the rate of interest?
- How much time do you get to pay for everything?
- How much is your payment each month?
Most importantly, don’t be afraid to ask questions about concerns you have regarding your medical loan.
It is recommended that you consult an expert on the matter, someone with a firm grip on medical expenses and loans. Companies such as 1st Franklin Financial Corporation have been in the industry for more than 75 years and have 319 loan offices throughout the South-eastern United States. 1st Franklin Financial has helped hundreds of thousands of people over the years servicing over 6 million loans and counting. They are industry leaders in providing a variety of loan types, including medical, up to $15,000 to people who desperately need financial support
When to get a medical loan?
The question you should be asking yourself before getting a loan is, “will I realistically be able to pay off the loan given my current income?” If the answer is YES, then getting a medical loan could be an option for you. For reference, a healthy ratio for the monthly payment is around 20-30% of the total income. It is recommended you don’t miss out on payments, because there is always a possibility that you could be charged with a higher penalty fee.
When considering whether to apply for a medical loan, remember being practical and realistic should be a top priority. Keep an open mind and always have a plan B in case things don’t go as planned.