BusinessHow can medical credit cards affect your finances? This is what...

    How can medical credit cards affect your finances? This is what some experts warn

    Although medical credit cards have become a valuable tool for paying for treatments and more amid expensive medical care and an adverse economic situation for the average American struggling with high prices, Experts point out that the use of these cards can be a great disadvantage for finances.

    According to a study by the Consumer Financial Protection Bureaumedical credit cards have become attractive because they offer 0% deferred interest, But if it is not paid before the grace period, that agreement may become unfavorable for borrowers.

    In other words, if it is not paid, all charges will be charged with interest accumulated from the date of request, according to the agency due to this recharge. Between 2018 and 2020, many Americans had to pay billions of dollars in interest.

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    Patricia Kelmar, senior director of health care campaigns at US PIRG highlighted that “By the time you go into a medical credit card, it is not considered medical debt; it is owed not to a medical provider, but to a bank. There are certain protections against how medical debt can be collected and how it shows up on a credit report or how it shows up on your credit score,” he said.

    In addition, according to the US Public Interest Research Group report, these cards do not provide the financial protection for medical debt that a hospital or medical care bill would. “People are turning to these credit cards to pay bills, but it is not working well for those who have to declare bankruptcy“Kelmar highlighted.

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    Understanding that with the high general prices for the American average it is difficult to pay for some medical services, Kelmar recommended in these cases not to opt for a credit card but for a payment plan with a health care provider that can fit your budget. . “Before these products were available, people simply worked out a payment plan with their provider“, said.

    Likewise, he recommended not making financial decisions in the midst of difficult situations “especially if you don’t feel well or have received bad news. These are emotional times, and making a decision right now probably won’t set you up for the best outcome,” he said.

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    Source: La Opinion

    This post is posted by Awutar staff members. Awutar is a global multimedia website. Our Email: [email protected]


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