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
Many treatment centers understand the financial hardships of people looking to recover from addiction and don’t want to deter anyone from getting the help they need. These centers offer an array of payment options, including automatic
monthly payments and graduated payment plans. They work closely with the client to individualize the treatment plan according to his or her financial situation. This removes the stress of payment and allows you to focus on recovery.
Use Personal Savings or Borrow From Your Retirement Account
Although the cost of rehab can be daunting, nothing is more important than your health and recovery. If you have insurance, call 1-888-319-2606Who Answers? to verify what your insurance will cover. If insurance doesn’t cover all of the costs of treatment, consider using your own personal savings before taking dire, financial actions that could potentially have high interest rates.
If you don’t have enough money in your savings to finance the cost of treatment but you have a retirement fund, you could borrow money from your 401(k), IRA, or in some cases, your life insurance fund.
Take Out a Home Equity Loan
How Much Does Rehab Cost?
Inpatient can range from $2,000 – $25,000 for a 30-day program, while outpatient can range from free to $10,000.
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
For lower interest rates, visit a bank or other lender for a personal loan if your credit history is healthy enough. You will be required to list your assets, income and expenses by presenting pay stubs or bank statements.
These loans have differing interest rates and repayment terms, so be sure to read the fine print. Opt for a fixed payment loan over a variable loan, so you can be sure what you owe each month.
Cover Costs With Health Care Credit Cards
Only use credit cards if you can pay off the debt quickly.
Another potential option for drug recovery financing is to seek out a health-care credit card through companies such as Care Credit.
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.