NASHVILLE, Tenn. (WTVF) — You've got your mortgage or rent, your water bill and gas bill and chances are you've probably also got medical bills that maybe you just can't afford to pay right now.
If that's you, know you're not alone. Nearly 100 million people in the country have some form of medical debt.
Part of the problem? Medical credit cards and loans that promise to ease the burden of medical debt. But experts say you really should think twice about signing up.
“These options can have high interest rates, steep payment penalties, and do damage to your credit,” said Consumer Reports' Lisa Gill.
CareCredit, is the largest medical credit card company out there and is a subsidiary of Synchrony Financial. A spokesperson for Synchrony, says that "CareCredit’s convenient and transparent financing options make health and wellness care more affordable and can be used to pay for a wide range of health and wellness items."
But, according to the Consumer Financial Protection Bureau, the average medical credit card carries a whopping 27-percent interest rate, much higher than the typical 16-percent for a general-purpose credit card.
A main reason the CFPB has warned, “Our research indicates that in many cases, patients who use these products end up worse off.”
Instead of signing up for a medical credit card or loan, ask your medical provider if they directly offer interest-free or low-interest payment plans.
If that doesn’t work, consider these other options --
“If you have good credit, you may want to consider a personal loan from your bank or credit union - where interest rates start around 10-percent,” Gill said.
Never provide your credit card when receiving care in an emergency room. If you’re insured, ask for the invoice to be sent to your insurance company.
If you’re uninsured, ask for it to be mailed to you so you can figure out how to pay or negotiate it in a calmer setting.
And if you’re confronted with a hospital bill you can’t afford, always ask if there’s a charitable program you can apply for. Many hospitals do offer them.
And if your insurance company refuses to cover a procedure that isn’t elective or cosmetic, you should consider filing an appeal. And it doesn't hurt to contact your company's HR department and get them involved on your behalf.
