Can You Use a Personal Loan for Treatment Centers and Rehab?

If you have a problem with drinking or drugs, it’s critical that you get expert and timely help in order to ensure you’re able to overcome your addiction and get on with your life. But good care is expensive and many people struggle to come up with the finances for rehab.

When it comes to inpatient care, Recovery.org estimates that it can cost in the range of $2000 to $25,000 for a 30-day program. If you are considering outpatient care, you might be able to find a free program, but paid programs can cost as much as $10,000. Meanwhile, if you require detox that can range between $300 and $800 a day.

Costs for recovery treatments vary so widely because of both differences in the level of care required depending on your problem and the nature of the accommodations. Inpatient rehab programs can be basic, standard, or premium, and last between 30 and 90 days. Similarly, outpatient therapy can refer to a number of different levels of care and include anything from therapy and counselling to intensive outpatient monitoring. The more care that you’re getting – the more expensive it will be. 

But not everyone who is in desperate need of that care has money readily available to pay for it. Here are some options when it comes to rehabilitation financing:

Personal Loans Are a Great Option

While there are a number of funding options available to people in need of treatment, one of the best options is a personal loan. That’s because you can often get the lowest interest rate via a personal loan than other options if you have a good income and a high enough credit score or a co-signer who has these. With personal loans, how much you pay in interest will depend on the lender and your credit-worthiness. It’s important to shop around to get the best deal.

Other Funding Options:

Crowdfunding

Many people use crowdfunding sites in order to pay for rehab. Sites like Indiegogo and GoFundMe are great places to ask family and friends to help. However, many people don’t feel comfortable publicly talking about their addiction and so this might not be a good option for everyone. Some people instead prefer to ask friends and family personally for help or a loan.

Home Equity Line of Credits (HELOC) or Loans

Another option for financing your rehab treatment is to take out a home equity line loan or line of credit. This allows you to get a very low interest rate because the loan is a secured loan that uses your home equity as collateral. The problem with this option is that it could put your home at risk if you are unable to make your loan payments in the future.

Health Care Credit Cards

Many people use health care credit cards to pay for rehab costs. The cards offer lower interest rates than other credit cards and grace periods of 6 months to over a year where you aren’t charged interest. After that, some health care credit cards expect you to pay them back like they are installment loans based on a pre-agreed term. They also tend to have higher rates than you would get via a personal loan or a home equity loan or line of credit.

Payment Plans and Clinic Financing

Some treatment centres offer payment plans where you can space out the cost of your treatment over a number of monthly payments. Many centers work with clients in order to find a solution for their financial situation if they need financing. Some treatment centres offer financing at low rates while others offer rates that are higher than you might be able to get elsewhere. Before accepting rehabilitation financing offers from a clinic, you might want to shop around to see if you can get a lower rate. .

Retirement Accounts

Another option is to borrow from your retirement savings. You can take out a loan from your 401(k), IRA, or permanent life insurance policy for health-related issues. The problem is that you often have to repay it back within specific periods of time to avoid penalties. Be sure to understand all of the terms of the loan before borrowing from these types of accounts.

What to Consider

Before you choose how to finance your treatment, it’s critical that you read the fine print of all rehabilitation financing options and ensure that the payment schedule is workable for you. It’s also important that you shop around in order to ensure that you can get the best rate.

While the options for rehab might be cost a lot, it’s helpful to remember that the cost of addiction are also crippling. These include medical bills for health-related issues and lost income and productivity. There are also significant personal costs related to addiction. Taking the time to seek treatment will undoubtedly pay off in the long term, even if it means you’ll have some high short term expenses.