Medical Credit Cards Can Be Life-Savers And Expensive
BOSTON (CBS) - With a stack of bills piling up on her kitchen table, Angela Gifford faced a dilemma.
Her husband recently lost his job and now he needed surgery their insurance wouldn't cover.
"He was in such extreme pain," she said.
Nancy Byron's dog needed surgery that would cost $5,000. Money she did not have. "It was absolutely life and death," she said.
Desperate, both women decided to open medical credit cards to cover the cost of the medical care. They are actual credit cards meant only for medical expenses.
WBZ-TV's Paula Ebben reports.
"Had I not been able to get the money, my dog would be dead," Nancy said.
Experts say these types of specialized credit cards appeal to those with few other options.
"People who don't have the money in the bank to pay for these procedures are much more likely to sign up for a medical credit card," explained Ben Woolsey of CreditCards.com.
But he warns there are pitfalls.
Read: Medical Credit Card? Proceed With Caution
"They are typically marketed with a no-interest payment option. But unless the consumer pays the balance in full during that promotional period, there are significant interest charges involved.
Nancy says she was never offered the zero-percent option and her 14.9-percentage rate jumps to 26 if she is late with a payment.
"I think it's sad when you're forced to deal with an incredibly high interest rate as a result of a tragedy," she said.
"Credit cards can be dangerous," she said. "They can be really dangerous; it depends on how you use them.
