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Can You Use a Personal Loan to Pay Medical Bills?
by
JG Wentworth
•
September 5, 2025
•
5 min
Medical expenses can be overwhelming. Even with insurance, deductibles, co-pays, and unexpected procedures can leave you with a financial burden that feels impossible to manage. Many people find themselves asking whether they can use a personal loan to pay for medical bills. The short answer is yes, but the longer answer requires an understanding of how personal loans work, what alternatives exist, and what the financial impact might be.
This information is provided for educational and informational purposes only. Such information or materials do not constitute and are not intended to provide legal, accounting, or tax advice and should not be relied on in that respect. We suggest that You consult an attorney, accountant, and/or financial advisor to answer any financial or legal questions.
How Personal Loans Work
A personal loan is a type of installment loan offered by banks, credit unions, and online lenders. You borrow a fixed amount of money and agree to repay it over a set period of time, usually with a fixed interest rate. Unlike credit cards, which allow revolving debt, a personal loan gives you a lump sum that can be used for almost any purpose. That flexibility includes paying off medical bills.
Approval for a personal loan usually depends on your credit history, income, and debt-to-income ratio. Strong credit can earn you lower interest rates, while weaker credit may limit your options or make borrowing more expensive.
Why Use a Personal Loan for Medical Bills?
There are several reasons why someone might turn to a personal loan when faced with mounting healthcare expenses:
- Consolidating Multiple Bills
- Hospitals, specialists, labs, and pharmacies often bill separately, which can leave you with several payments due at once. A personal loan can help combine those into a single monthly payment that is easier to manage.
- Predictable Repayment Schedule
- Unlike a credit card that can accumulate interest indefinitely, personal loans have fixed terms. You know exactly how much you owe each month and when the loan will be fully repaid.
- Potentially Lower Interest Rates
- If you qualify for a competitive rate, a personal loan could cost less than carrying medical debt on a high-interest credit card. This can save you money in the long run.
- Quick Access to Funds
- Once approved, personal loans can provide funding in just a few days. This is helpful if you need to pay a hospital bill immediately or avoid collections.
Potential Drawbacks to Consider
While personal loans can help cover medical costs, they are not always the right choice. Before applying, it is important to weigh the risks:
- Interest Costs: Even with good credit, interest adds to the total amount you pay. If your medical provider offers a zero-interest payment plan, that might be cheaper.
- Fees: Some loans come with origination fees or penalties for early repayment.
- Impact on Credit: Missing payments or taking on more debt than you can manage may lower your credit score.
- Qualification Barriers: Those with poor credit or unstable income may not qualify for favorable loan terms.
Apply for a personal loan
Apply for a personal loan
Alternatives to Using a Personal Loan
Before committing to a loan, consider whether other options could make more sense:
Negotiating with Your Provider
Many hospitals and doctors’ offices are open to negotiating bills. You may be able to request a discount for paying in full or set up an extended payment plan directly with the provider.
Financial Assistance Programs
Nonprofit hospitals often have financial aid policies that reduce or forgive bills based on income. State or local programs may also be available for qualifying patients.
Medical Credit Cards
Some lenders offer credit cards specifically for healthcare costs, often with promotional periods of no interest. Be careful though, as interest rates can rise steeply once the promotional period ends.
Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs)
If you have one of these accounts through your employer, you may be able to use tax-free money to pay down medical costs.
When a Personal Loan May Be the Right Choice
A personal loan can be a good option if:
- You have multiple bills that you want to consolidate into a single payment.
- You need funds quickly to prevent your account from being sent to collections.
- You can qualify for a loan with a reasonable interest rate and repayment term.
- You have a steady income and a clear plan to repay the loan.
On the other hand, if your medical provider offers a low or no-interest repayment plan, or if you are eligible for financial aid, those options may be less costly than borrowing.
Final Thoughts
Yes, you can use a personal loan to pay medical bills, and for some people it can provide financial relief and peace of mind. Still, it is important to treat it as one tool among many. Before applying, consider whether negotiating directly with your provider, seeking assistance programs, or using savings options might reduce your costs without adding interest or fees.
Medical debt is stressful, but with the right approach, you can create a manageable plan to take control of your finances while focusing on recovery.
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