5 tips on using a personal loan to take care of your medical expenses

Published on June 14th, 2020
  Written by 
Savvy Editorial Team
Savvy's content writing team are professionals with a wide and diverse range of industry experience and topic knowledge. We write across a broad spectrum of finance-related topics to provide our readers with informative resources to help them learn more about a certain area or enable them to decide on which product is best for their needs with careful comparison. Meet the team behind the operation here. Visit our authors page to meet Savvy's expert writing team, committed to delivering informative and engaging content to help you make informed financial decisions.
Our authors

Fact checked

At Savvy, we are committed to providing accurate information. Our content undergoes a rigorous process of fact-checking before it is published. Learn more about our editorial policy.
Personal loan for medical expenses

At Savvy, our mission is to empower you to make informed financial choices. While we maintain stringent editorial standards, this article may include mentions of products offered by our partners. Here’s how we generate income.

Being prepared for those unexpected medical expenses can be a hard ball to juggle for many Australians. However, getting a personal loan to deal with those unexpected costs at a competitive rate can be a financially wise move to make. These are some of the five ways a personal loan can help you handle your medical expenses effectively.

It’s unsecured

Whether you have a budget set aside for medical expenses or have nothing in the piggy bank, when an unexpected medical bill pops up that costs a substantial amount you will need to start considering your options. A small personal loan is one of the many options available to you that can help take care of your medical expenses. The benefit is that it comes as an unsecured loan which means you don’t have to use your car or house as security, which means 0% of your assets being repossessed.

You can use it to consolidated debt

An emergency expense will not only leave you physical and emotionally drained, but it can also leave a dent in your finances. (Insert data) of Australians do not have adequate finance to cover an emergency medical expenses. This also means that some Australians could be left with a medical debt they have to pay off. A personal loan comes with a competitive rate that can help you consolidate your debt under one interest rate.

You can get a personalised loan

One of the main benefits of a personal loan is that you can rest assured that you are not getting a cookie-cut solution. A lender will assess you on an individual basis to offer you a loan that comes with features and a rate that is suitable for your current financial situation to ensure that you will be able to meet the repayments. However it will also be wise to compare your options and loans before settling. Always keep in mind to read the fine print to see if the loan is suitable for you.

Can be used anywhere

When you are facing with the expenses of dealing with an illness or injury the last thing you want to hear is that your medical aid is not recognised by the doctor you have gone to. A personal loan cuts through this red tape and can help pay for your medical bills no matter where you are receiving the health care that you need. With personals ranging up to $50,000, you will be able to take care of both small and large medical expenses.

Know what to compare

If used correctly a personal loan can be the answer to your medical expenses. But if you do not know what to look out for, it can create more problems than solutions. Knowing what to look out for when comparing loans is the first step in the right direction. When comparing your loans or any other option you will need to consider things such as:

  • The APR rate which accounts for the loans fees and interest rate so that you know the true cost of the loan.
  • Upfront and ongoing fees can make or break your finances in terms of the interest you pay which in turn will affect your repayments.
  • Flexible repayments is a must watch because this will show you if you are able to pay put your loan early or make additional repayments without any penalty.

It is vital that you choose a loan term and amount that is suitable for you and is within your financial reach. This will help you avoid prolonging your repayments which could increase your chances of getting into debt.

Did you find this page helpful?

Thanks for your feedback!

This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

Approval for personal loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.

The interest rate, comparison rate, fees and monthly repayments will depend on factors specific to your profile, such as your financial situation, as well as others, such as the loan’s size and your chosen repayment term. Costs such as broker fees, redraw fees or early repayment fees, and cost savings such as fee waivers, aren’t included in the comparison rate but may influence the cost of the loan. Different terms, fees or other loan amounts may result in a different comparison rate.

In this article

Share this article

Share on facebook
Share on twitter
Share on linkedin
Share on email
Share on pinterest

Looking for a personal loan?

Compare personal loan lenders with Savvy and get approved today!

* Terms and conditions and lending criteria apply.

Smart money saving tips

Subscribe to our newsletter.

By subscribing you agree to our privacy policy

Compare personal loans today

We’re here to help you find the most affordable options, so there’s no better way to compare personal loans and rates than right here, all in one place.

Related articles

Personal loan for medical expenses

We'd love to chat, how can we help?

By clicking "Submit", you agree to be contacted by a Savvy broker and to receive communications from Savvy which you can unsubscribe from at any time. Read our Privacy Policy.