How to Finance a Medical Emergency

An OppLoans E-Book

OppLoans: How to be ready when disaster strikes


How to be ready when disaster strikes

If you’ve been lucky enough to avoid a serious medical emergency so far, now is the time to start preparing for the worst. Here are some things you can do right now to help soften the blow when disaster strikes.

Start an emergency fund.

Unfortunately, many of us don’t have enough wiggle room in our bank accounts to absorb the impact of even the most routine medical expenses — in fact, a 2016 survey from the Federal Reserve found that 46 percent of Americans don’t have enough money saved to cover a $400 emergency expense.1

An emergency fund is a savings account you can use in case of illness, job loss, or any other unexpected life event. If you don’t already have an emergency fund, start saving right now. Most experts agree you should have a three-to-six-month financial cushion in savings, but even if you have to start at zero, a small amount of savings is better than nothing.

Keep credit card balances low.

If you have access to a credit card, keeping your balances low can help you avoid a financial disaster. For example, if you have a credit card with a $5,000 limit and you keep the balance below $500, you’ll always have easy, fast access to at least $4,500 in case of emergency, be it medical or otherwise.

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