Think twice before paying off hospital debt with a medical credit card or loan from a healthcare provider.

Millions of families have some form of medical debt, and it can be daunting and debilitating if you’re struggling to pay the bill. But before you sign up for one of those medical credit cards or a loan offered by the health care provider — promising to ease the burden — Consumer Reports warns that you could end up doing more harm than good. GOOD.

These options can have high interest rates, high payment penalties and hurt your credit, said Consumer Reports investigative reporter Lisa Gill.

CareCredit is the largest medical credit card company and is a subsidiary of Synchrony Financial. A Synchrony spokesperson said:

CareCredits’ convenient and transparent financing options make health and wellness care more affordable and can be used to pay for a wide range of health and wellness items.

DIRECT LINKS FOR HELP WITH MEDICAL DEBT: DollarFor.org: Discounts or bill forgiveness based on income | Credit Bureaus Offer Leniency for Medical Debt | How to Appeal a Denied Insurance Claim

But according to the Consumer Financial Protection Bureau (CFPB), the average medical credit card carries a huge amount. 27% interest rate — much higher than the typical 16% for a general-purpose credit card.

This is the main reason why the CFPB said: Our research indicates that in many cases, patients who use these products end up worse off.

Instead of signing up for a credit card or medical loan, Consumer Reports says you should ask your medical provider if they offer no-interest or low-interest payment plans.

If that doesn’t work, Consumer Reports advises you to consider other options. If you have good credit, you may want to consider a personal loan from your bank or credit union, where interest rates can start around 10%.

This is important: Consumer reports say to NEVER provide your credit card when receiving care in the emergency room. If you are insured, request that the bill be sent to your insurance company. If you are uninsured, ask for it to be mailed to you so you can figure out how to pay for it or negotiate in a calmer setting.

If you are faced with a hospital bill that you cannot pay, always ask if there is a charitable program you can apply for. You can find out how to apply with your specific hospital at DollarFor.org.

If your insurance company refuses to cover a procedure that is not elective or cosmetic, you should consider appealing.

Open Enrollment for Affordable Healthcare

If you are uninsured, the City of Jacksonvilles Be covered The initiative wants to make sure you don’t miss your chance to get affordable health insurance. The city says 120,000 people in Duval County don’t have health coverage.

News4JAX is partnering with the city to get the word out that open enrollment is underway, allowing you to choose from a variety of private health care plans through the Florida Health Insurance Marketplace on Healthcare.gov.

If you need help navigating, the city has you covered. Make an appointment for free one-on-one assistance by calling 866-295-5955. The open enrollment period ends on January 15, 2024.