Using Credit Cards, Loans and Crowdfunding to Cover Treatment Costs
Rehab can be expensive, even if you have insurance. You have several options if you're looking to finance treatment.
Raise money through crowdfunding sites, which make it fairly easy to set up a campaign.
See if the treatment center offers a payment plan.
Borrow from your personal savings or retirement account.
Take out a loan through a bank or a loan company that caters to those seeking substance abuse treatment.
Look into health care credit cards.
Consider less risky options, such as using personal savings or borrowing from friends or family, before more risky options that may include high interest rates.
Borrow from Friends and Family
If you are concerned about the cost of recovery treatment, don't let it discourage you. The most important thing is getting the help you need to live a sober and happy life. A number of crowdfunding platforms allow you to raise the money you need to receive proper treatment.
Set Up a Treatment Center Payment Plan
Use Personal Savings or Borrow From Your Retirement Account
Take Out a Home Equity Loan
If you or your loved one has a home to offer as collateral , securing a home equity loan can be more beneficial than a typical personal loan.
Banks see these loans as relatively low risk, so the interest rates are typically much more favorable than those of unsecured personal loans. You can pay points to further lower your rates. A point is equal to 1 percent of your overall line.
If you're interested in this type of loan, see whether you have enough equity in your home to qualify and be sure you're comfortable borrowing against your home.
Turn to Specialized Loan Companies
Many financial institutions, such as Prosper Healthcare Lending and My Treatment Lender , cater to those seeking drug rehab financing. These loan companies typically offer special loan packages that are affordable and tailored to the costs of treatment.
By using such companies, you or your loved one can extend repayment over time instead of worrying about making a payment upfront. These loan companies also have lower interest rates than credit cards and health care cards.
Similar to other loan companies, you or your loved one will be asked to fill out a form that details your financial and credit situation to determine eligibility.
Apply for a Personal Loan
Cover Costs With Health Care Credit Cards
Some credit companies cater to those looking to cover medical expenses and even offer credit to people with a poor credit history. Those with a good credit history may be able to receive up to $20,000 or more in credit for financing an addiction recovery program.
Similar to traditional credit cards, the interest rate can be very high. But you can find lower rates through promotions and longer repayment terms.
Finance Care Through Credit
If you cannot afford upfront payments, you can explore financing care through credit. This allows you to immediately enter a program and get the help you need. If you qualify for 0% interest, this is a good option for a fast and inexpensive route for financing care.
Monthly payments and interest rates on credit cards may be high, though, so you or your loved one should only choose this option if you can pay off the debt quickly.