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You can get a loan to pay off medical debt, but it's usually not the best option. Loans can help consolidate medical debt and make payments more manageable, but they may also add interest, increasing the total cost of medical bills. Before borrowing money, take time to ensure your medical bill is accurate and explore alternatives such as negotiating it, getting financial assistance or paying it over time without taking on new debt.
What Loans Can Be Used to Pay Off Medical Debt?
Several kinds of loans and credit can be used to pay off medical debt, each with risks and benefits to consider.
Personal Loans
A personal loan is a lump sum you repay in fixed monthly installments. Personal loans are available for as much as $100,000, with repayment terms usually between one and seven years. Most personal loans are unsecured, meaning you don't need collateral, and you'll typically receive funds quickly if you're approved.
Interest rates for personal loans can range from the single digits to 35% or more. Depending on your credit score and other factors, personal loans could be an expensive way to borrow money. They may also charge origination fees and other fees, which can add to your costs.
Learn more: Personal Loan Requirements to Know Before You Apply
Medical Credit Cards
Medical credit cards are special cards that can be used only for medical costs and sometimes only for certain procedures. You can apply for medical credit cards online or, in some cases, at your provider's office; the approval process is typically fast.
Many medical credit cards offer zero-interest financing for six, 12, 18 or 24 months. Zero-interest financing can help you manage your medical debt, but if you don't pay the full balance before the zero-interest period ends, all the deferred interest retroactive to the purchase date will be added to your balance at once. This could leave you deeper in debt than when you started.
Medical Installment Loans
Some medical providers offer medical installment loans, usually through partnerships with third-party financial services companies. The specifics of these loans can vary widely, but they often offer fast approval, loan amounts of up to $40,000 and repayment terms of up to 60 months. Although medical installment loans sometimes offer deferred interest options, this can become expensive if you don't repay the loan before the zero-interest period is over.
Be aware: Some "medical loans" are simply personal loans marketed specifically for health care expenses, rather than a distinct type of loan.
Home Equity Loans
A home equity loan is a type of a second mortgage that lets you borrow against your home equity and receive funds in a lump sum. The amount you can borrow depends on your home equity and the lender's guidelines. Home equity loans usually have fixed interest rates and are repaid over five to 30 years in fixed monthly payments. There may also be closing costs and fees, adding to the cost of the loan.
Because your home acts as collateral, interest rates for home equity loans are generally lower than for unsecured loans. However, home equity loans reduce your equity in your home, and you could face foreclosure if you can't pay the loan.
Learn more: Pros and Cons of Home Equity Loans
Home Equity Line of Credit (HELOC)
Another type of second mortgage, a HELOC is a revolving credit line secured by your equity in your home. Similar to a credit card, you can use a HELOC to borrow only as much as you need up to your credit limit. During the draw period (usually up to 10 years), you can access funds as needed and typically make minimum or interest-only payments. After the draw period, you enter the repayment period and begin paying both principal and interest, typically over 20 years.
HELOCs offer flexibility that can be useful if you have ongoing medical costs. Interest rates are usually lower than for unsecured loans but are typically variable, so your costs could rise. There may also be closing costs and fees. In addition to reducing your home equity, a HELOC puts your home at risk if you can't repay the loan.
Learn more: Is a HELOC a Good Idea?
Is It a Good Idea to Pay Off Medical Bills With a Loan?
In most cases, paying off medical debt with a loan should be a last resort. Interest and fees from loans and medical credit cards will increase the amount you owe, and using a home equity loan or HELOC could mean losing your home if you can't repay the loan.
If no other options work for you and you can qualify for a low interest rate, using a loan to pay off medical bills may make sense. You might also want to use a medical debt consolidation loan if you're already in the process of paying off multiple medical bills and want to make the process more manageable.
Before applying for a loan, explore alternatives such as financial assistance or payment plans, which may help you manage medical bills without borrowing money.
Learn more: Can You Settle Medical Debt?
Ways to Pay Off Medical Debt Without a Loan
There are several options that may help you pay a medical bill without a loan by reducing or even eliminating the debt. First, however, you'll need to confirm the bill is accurate.
- Request an itemized bill from your provider and review it carefully for errors, overbilling or double billing.
- Compare the bill to your health insurance company's explanation of benefits (EOB) to ensure that your insurance coverage was correctly applied.
- If you find errors or have questions, contact your insurance company or medical provider to resolve the issue.
Once you're confident the bill is correct and your insurance claims have been paid, try the following alternatives for handling medical debt without a loan.
Negotiate the Bill on Your Own
Contact your provider's billing department to see if you can negotiate a medical bill. Ask about prompt pay discounts, which significantly reduce your bill if you pay the reduced balance in full right away. You may also be able to negotiate cash rates or self-pay rates, which are lower rates that providers charge uninsured patients. While these prices are more likely to be available if you're uninsured, it's always worth asking.
Hire a Medical Billing Advocate
Medical billing advocates work on your behalf to find and remove errors and overcharges on medical bills, contact medical providers and insurance companies for you, and negotiate reduced payments, payment plans or even loan forgiveness. Advocates generally charge an hourly rate or a percentage of any money they save you.
Tip: Some employers offer medical billing assistance as an employee benefit. You can also find medical billing advocates through the Alliance of Claims Assistance Professionals or the Greater National Advocates directories.
Pursue Medical Bill Forgiveness
Some providers offer income-driven hardship plans for low-income patients. Income-driven hardship plans forgive part of your medical debt and divide the remaining amount into monthly installments that are realistic for your income level. In some situations—for example, if you have a disability that prevents you from earning income—you may be able to have all of your debt forgiven.
Look for Financial Assistance or Charity Care Programs
Nonprofit hospitals are required to provide financial assistance (sometimes called charity care) for people with incomes below a certain level; many for-profit hospitals and medical providers do so as well. Don't assume you won't qualify: Many providers offer discounts for patients with incomes up to 400% of the federal poverty level. For 2026, that's $128,600 for a family of four. Financial assistance with medical bills may also be available from religious organizations, nonprofits, or local or state government programs.
Set Up a Payment Plan
If you've exhausted alternatives for reducing your medical debt, see if your provider will agree toa payment plan. Medical payment plans break your debt into monthly payments so it's more manageable; some plans charge no interest or fees.
The best time to discuss payment plans with your medical provider is before getting care, but you can also contact your provider after receiving your bill to explore options.
Tip: Whether negotiating debt reduction or forgiveness, or starting a payment plan, make sure to get the terms of your agreement with your medical provider in writing.
Learn more: How to Get Help With Medical Bills
Frequently Asked Questions
Do Medical Bills Affect Your Credit?
Unpaid medical debt doesn't affect your credit score unless it goes to collections. Even then, the debt will not appear on your credit report unless it's for $500 or more and is more than 365 days past due. This helps give you time to work out a solution for paying the debt to avoid damage to your credit. If unpaid medical debt appears on your credit report, it can stay there for seven years from the date it first became delinquent. However, once you pay the debt, the collection account will be removed.
What Happens if You Can't Pay Medical Bills?
If you can't pay your medical bills, contact your provider right away to explore options such as negotiating the bill, setting up a payment plan or getting financial assistance. If you can't pay the bill and don't take any action, your account may go to collections. An account in collections may be reported to credit bureaus, which can damage your credit score.
Can You File Bankruptcy on Medical Bills?
Although there is no such thing as medical bankruptcy, medical debt can be discharged through regular Chapter 7 or Chapter 13 bankruptcy. Depending on the type of bankruptcy you choose, you may have to repay part of what you owe. Bankruptcy has a serious, long-term impact on your credit score, so it should only be considered as a last resort.
You Have Many Options When Dealing With Medical Debt
You can't plan for a medical emergency, but you can be prepared by understanding what your health insurance covers and how to minimize your out-of-pocket costs. This knowledge will help you make smart decisions about both your medical care and its impact on your budget.
To tackle unpaid medical bills, start by exploring options that don't involve debt, such as payment plans, financial assistance or bill negotiation. If you decide a loan is the way to go, having good credit can help you qualify for lower interest rates. You can check your FICO® Score☉ Θfor free from Experian to see where you stand and get matched with personal loans that fit your credit profile.