Which Is Better? Paying In Full, Or Setting Up A Payment Plan?

It’s the age old debate. Which method of payment is really going to be the best for us as consumers? Many medical professionals offer both, but are there advantages to one over another? And if so, Why does it make a difference? All these questions are ones we have faced at some point in our lives. And there’s a lot riding on us finding the right answers! Our friends, family, and future all seem to be counting on us! But it’s nothing to get worked up over, the first thing to remember, is that you really can’t go wrong! Each method has its own strengths, weaknesses, and risks. Each of which need to be evaluated in making the decision that is best for you in your situation.

The Weaknesses

We’ll start with the weaknesses of each option, because ending with them makes it feel like there’s really no good option. No matter which method of payment you select, there is always a weakness. It’s important to be aware of this when considering your options, because their weaknesses may not make them the best option for your particular situation! Regardless of how comfortable you are with the risk.

Paying In Full

Some of the weaknesses of paying in full are pretty apparent. One of which, being that it’s tough to let that much cash go at once. Letting the piggy bank take the hit can leave us feeling strapped for cash. If you don’t have enough money to cover your payment in full, as well as the rest of the expenditures you need to make that month, it makes paying in full a very poor option. Another less apparent weakness of paying in full is the loss of potential interest earned. If you have the money in a savings account, or other money saving method that earns interest, by paying in full you are sacrificing all the interest that may have been earned by that money where it was.

Making Payments

The weaknesses of payments you may have to dig a little deeper for, but they do exist. When making payments it increases your monthly payments and can put strain on your potential income. Furthermore the total cost of making payments comes out to be more than it otherwise would have if the bill had been paid in full.

The Strengths

Thankfully, there are some serious upsides to either way of paying your medical bills! These advantages can be used to their fullest ability when you have a plan in place!

Paying In Full

The two advantages of paying in full are a powerful team, and draw me their direction anytime I can. The first reason being that when you pay in full, you often get significant discounts that drastically reduce the amount of money that you actually have to pay. Additionally, knocking it all out in one go leaves you with one less thing to worry about. 

Making Payments

Making payments is what would be recommended by many financial advisors for its potential to increase your wealth. Paying is segments makes it possible for you to keep putting the remaining money to work for you, potentially increasing your wealth. In addition it breaks down what can be a monstrous payment into bite sized chunks. Chunks that many more people can handle, whether they have insurance or not. Ultimately the decision is yours. Just go with the choice you believe is going to be the most feasible for you and your family!

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