Admitting that you have a problem with alcohol or drugs is a courageous step. You’ll have almost no worries once you make the decision to take the path to heal. Unfortunately, there’s still one thing you’ll have to think about before you can get the help you need. You have to figure out how you will pay for treatment. The cost of treatment at reliable drug alcohol rehab centers can range from $2,000 to more than $25,000. That might be easy to manage if you have an insurance policy that will cover it. If you don’t, then you’ll have to find another resource for payment. You might wonder if you can get a loan to pay for rehab. Here’s the answer to that question plus a little information about some solutions you can explore.
Can You Get a Loan to Pay for Rehab?
The short answer to the question of whether you can get a loan to pay for rehab is yes. Various loans exist for which you may apply and use the funds any way that you see fit. Some applications might ask you to specify the reason for the loan. They usually have a drop-down list that includes “medical” as an option. You can say that your request is for a medical purpose without telling the lender that you need it for drug or alcohol addiction recovery.
How to Qualify for a Loan to Pay for Rehab
You will have to meet certain criteria to qualify for a rehab cost loan. First, you’ll need to be over 18 years of age because you’ll have to sign a contract to obtain the advance. Secondly, you will need to qualify financially. The lender will consider your monthly income in making its decision. Therefore, you’ll need to establish that you earn a significant income and you have a stable source of employment. In some cases, you might have to have a credit score that is more than average. In other cases, you may have to furnish a list of references that the potential lender can contact. You should be able to receive approval if you visit the lender prepared, and you show that you can handle the repayments.
Secured vs. Unsecured Loan for Rehab
There are two main types of loans for which you may qualify. A secured loan is an advance that the lender provides you without asking for collateral. A secured loan is one that you secure with a title or deed to something that you own. Some lenders will ask for collateral if they believe that you might be a risk. They may lift the collateral requirement after you repay your first loan from them. Your prospective loans will fall into one of those two categories. You can choose the type that most aligns with your needs and your situation.
Types of Loans You Can Use to Pay for Rehab
As mentioned, you have quite a few options when it comes to getting the funds you need to pay for rehab. These are a few ideas you can start with:
Traditional Loan for Rehab
You can try your hand at borrowing the money from a traditional lender such as the bank where you hold your checking account or your local credit union. Conventional loans will be more attainable if you have a high credit score. The amount you can borrow for a personal loan will depend on your income. Traditional loans usually have a longer process than other loan types. Therefore, it might not be the best option for you if you’re trying to get into rehab quickly.
401K Loan for Rehab
You can borrow from your 401K plan if you have such an account through your employer. The interest rate will most likely below, and the process of approval will be shorter than it will be with a traditional lender. The best part about borrowing from your 401K is that you repay yourself, and the money goes back toward your future.
Title Loan for Rehab
A title loan might be right for you if you own a vehicle, and you want to start your recovery fast. Borrowers normally can receive their funds the same day they apply for a title loan. Most title lenders give their borrowers at least 30 days to repay the advances. This type of loan might be perfect if you want to attend a short recovery program. Bear in mind that you’ll have to use your car title as collateral for the loan. However, you might be able to get a large amount if you have a newer vehicle that’s popular in the market.
Installment Loan for Rehab
Installment loans typically range from $100 to $5,000. Installment lenders may allow you to repay the loan over 12 months or longer. These types of lenders generally have quick approval processes, and they may qualify you with your income rather than your credit score. You need to meet the income requirements to qualify, and you will most likely need to have a bank account that is in good standing. The lender will deposit and withdraw funds from that account.
Home Equity Loan for Rehab
A home equity loan can finance your recovery and provide you with extra cash to make some other life improvements. You may qualify for such a loan if you’ve had your home for a while, and you’ve made a significant number of payments on it. You have a right to use the proceeds from your home equity loan for any reason, including paying unexpected medical bills. Your drug or alcohol addiction recovery will qualify as an unexpected medical expense.
Author Bio: Patrick Bailey is a professional writer mainly in the fields of mental health, addiction, and living in recovery. He attempts to stay on top of the latest news in the addiction and the mental health world and enjoy writing about these topics to break the stigma associated with them.
