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Is a personal loan the right way to deal with medical bills?

Health care is expensive, even for those who have health insurance. A health emergency, unexpected injury or unplanned surgery can result in medical bills that can quickly wipe out a Pennsylvania family’s savings. These bills may continue to add up, and some individuals may consider taking out certain types of personal loans to deal with these balances.

Nearly two-thirds of bankruptcy filings between 2013 and 2016 listed medical bills as one of the leading reasons for that decision. This type of debt is one of the most common and most pressing financial concerns for American households. A personal loan is one approach for dealing with these bills, and it can be as simple as completing a short application.

While a personal loan can get a Pennsylvania consumer his or her money sometimes within just a few days, it may require a major asset as collateral, such as a home. This can be risky, especially if the individual is already having trouble meeting basic monthly expenses and paying bills on time. A personal loan can help pay off medical bills, but it may only be a quick fix that does not fully address significant financial concerns.

Chapter 7 bankruptcy may be a valid way for someone to deal with past due medical bills once and for all. This process allows for the discharge of certain unsecured balances. Before applying for a personal loan to pay for medical debt, it may be prudent to speak with a legal professional who can provide knowledgeable and experienced guidance regarding these important financial decisions.

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