This is going to cost you some serious cash.
Who can afford that?
But wait, they say.
In fact, you wont be charged any interest at all for a whole year.
Sounds like a good deal, right?
You may end up paying a lot more money in the long run.
These new forms of medical debt can create financial ruin for individuals who get sick.
No Interest Til Almost 2027?
More recently, a bunch of financial technology companies have started offering installment loans for medical care.
Medical credit cards typically offer a promotional period during which you pay no interest.
This is known asdeferred interest,and it can be tricky and dangerous.
You dont pay any interest, making it a good deal.
Missing a payment means youre suddenly being charged lots of interest.
We collected some advice from the consumer protection agency, CareCredit and other resources.
Ask Lots of Questions
Ask questions like, Is this a credit card?
Read the Fine Print
The devil is in the details.
The particulars of each card or installment loan or payment plan vary widely.
Interest rates and the lengths of promotional periods vary significantly from product to product, the CFPB said.
You obviously want to understand when the promotional period ends.
Check to see if the required minimum payment will be enough to pay off the balance in time.
If not, you better start paying more than the minimum amount.
Can you really do it?
If not, those ballooning interest charges will kick in before you know it.
Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder.
It sounds appealing right?
Check it out here!
