Paying off medical bills with home equity

Medical bills are known for errors. Ask each provider for an itemized bill and compare it with your insurer's explanation of benefits. Look for duplicate charges, services you didn't receive and claims that should have been covered.

If something looks wrong, call the provider and your insurer before you pay or borrow. Keep notes on who you spoke with and when. Fixing one error can sometimes lower a bill more than any loan could.

• Many hospitals, especially nonprofit ones, have financial assistance programs based on income
• Providers often accept a lower amount for a prompt lump-sum payment
• Most offer payment plans, often with little or no interest
• A patient advocate or billing advocate can negotiate on your behalf

The math changes once medical costs land on a credit card, a medical credit card or a personal loan. Those can carry high rates, and some medical cards charge deferred interest if the promotional balance isn't paid in time.

If you're carrying a large balance like that, a fixed-rate home equity loan may cut your interest and give you one steady payment. CapCenter home equity loans start at $50,000, so this tends to fit larger balances or several debts combined.

• The bills sit with providers on interest-free payment plans
• You haven't yet asked about assistance or a reduced amount
• Treatment is ongoing and more bills are likely
• Your income is uncertain because of the health issue itself

A medical event can affect your ability to work. Before you add a loan secured by your home, ask whether you could keep up the payment through a longer recovery or a change in hours.

If more care is ahead, it may be wiser to keep your equity untapped and your savings intact for now.

CapCenter offers fixed-rate home equity loans from $50,000 to $250,000 on single-family primary residences and second homes, with ZERO Closing Costs (restrictions apply; see Offer details). A loan consultant can help you compare the new payment with what you pay today.