Financing... Who did you use?

Ang1982 · 09-25-2007, 11:52 AM

Hello my friends!

I have been doing some searching on the internet as to different financing options available in Canada and thought I would see what you guys have to say in case I am perhaps missing something.

So, if you got financing help did you go through a bank personal loan? Has anyone used Medicard (or whatever it's called)?

How much did you finance? How long is your finance term? Are you comfortable telling me approx how much per month you pay?

Thanks in advance!!!

heidi49 · 09-25-2007, 12:27 PM

Hi Ang. I used Medicard to finance the full $16,000 cost of my surgery (done last June). The term of the loan was for five years (my choice), and I am paying $472 per month. Best money I have ever spent - finally I am in debt for a good reason!!

Gaffer · 09-25-2007, 12:50 PM

I used a HELOC to finance my surgery. If you have a house & have equity in it this is your best way to go. Interest is at prime (currently 6.25%) usually. With HELOCs and you can pay it off on your terms.

You can even use 0% balance transfers etc. from CC to pay it down while borrowing money interest free or at low interest to save interest costs.

Andrew

Ang1982 · 09-25-2007, 12:57 PM

Argh, the current dilemna that I am facing is that I am already 3 years into a 6 year car loan that I pay approx $524/month for. And unfortunately I do not have a house to use for equity as I am just a renter right now.

I'm trying sooo hard to not get discouraged... but it's not working =/

Quote:

Originally Posted by heidi49

Hi Ang. I used Medicard to finance the full $16,000 cost of my surgery (done last June). The term of the loan was for five years (my choice), and I am paying $472 per month. Best money I have ever spent - finally I am in debt for a good reason!!

lizzie_07 · 09-25-2007, 11:04 PM

Unless you are a student this wouldn't apply to you, but my plan is to use my student line of credit. I'm not sure if this is my best option though so if anyone could give me some advice as well that would be great. I can't remember the exact percentage but I would be paying approximately $100 a month interest for the $16000 loan. My plan is to worry about that for the next 2 years (until i graduate) and then start paying off the debt itself. Is there a cheaper way to go about this with perhaps less interest each month?

Thanks,

Elizabeth

**Wheetsin** · 09-25-2007, 11:14 PM

Quote:

$16,000 cost of my surgery (done last June). The term of the loan was for five years (my choice), and I am paying $472 per month.

Holy cow, that's like 43% interest.

What's medicard, and what's the advantage of using it over, say, a credit card?

andreerichards1 · 09-26-2007, 12:12 AM

I use medicard from Dr C webpage, im happy i did it but i should of when and see what the bank was offering i got 16000 over 5 years so i made one payment and refinance my house no way in hell i will pay 250$ interested a month. hope that helps you.

Gaffer · 09-26-2007, 09:42 AM

Quote:

Originally Posted by lizzie_07

Unless you are a student this wouldn't apply to you, but my plan is to use my student line of credit. I'm not sure if this is my best option though so if anyone could give me some advice as well that would be great. I can't remember the exact percentage but I would be paying approximately $100 a month interest for the $16000 loan. My plan is to worry about that for the next 2 years (until i graduate) and then start paying off the debt itself. Is there a cheaper way to go about this with perhaps less interest each month?

Thanks,

Elizabeth

I am not sure what your overall financial picture looks like. Do you have any student loans as well? Be careful with SLC. I had a large one when I finished university a while back. If you do go with the SLC make sure that you are only having to make the interest payments while you are in school and the make the principle payments once you are finished school & hopefully gainfully employed.

If you financial situation allows, and you are not already too deep in debt look in to student loans. They are some of the cheapest money you can get and they have pretty decent repayment terms. The "nice" things about student loans is that they do not impact you as much when you are looking to get a mortgage or other loans down the road. The interest you pay on them is tax deductable, and the interest is about the same as what you would pay on a SLC.

If I were to do what you were proposing I would use the SLC to pay for the surgery up front, and then apply for student loans (ie OSAP) and use them to pay down the SLC assuming you dont need them to pay for your schooling.

I would be concerned though about your financial picture if you were already deep in debt with student loans, plus looking at financial a surgery with a SLC. That is a really big hole to dig yourself out of so early in your life. I was about $30K in debt when I finished my second degree, and I am still paying it off. Luckily I have been able to offset that by marrying a wife with, and having a decent paying job my myself and hitting the jackpot by buying a house that doubled in value in 3 years.

Andrew

Gaffer · 09-26-2007, 09:54 AM

Quote:

Originally Posted by Wheetsin

Holy cow, that's like 43% interest.

What's medicard, and what's the advantage of using it over, say, a credit card?

Medicard is a company that finances surgery for people in Canada. They either give loans or have a credit card type plan Medicard Finance Inc :: Canada's Patient Financing Company

The interest rate that is being paid on that loan is criminal, assuming the info is correct. If so, I cant belive it. The only thing I can think of is there is some sort of compounding interest on the loan.

There must be a better option whether it be traditional CC which ONLY charges 18ish% or some form of unsecured credit line, or HELOC.

Andrew

lizzie_07 · 09-26-2007, 03:56 PM

Gaffer,

Thank you so much for the advice.

I currenly have a $30 000 line of credit, $15 000 of which I have used already for living expenses only (my parents are actually paying for my school which has been a big break for me). It's complicated, but basically I will not be going any further into debt over the next 2 yrs, so I decided to put the rest of my line of credit to good use by getting this surgery done now while I'm young and don't have anyone else to worry about but myself.

I will look into a student loan like you said. The reason I haven't is because my parents thought they made too much for me to get one. Now I'm wondering if that even matters...

Also, I am a nursing student and they are offering a surprising amount of money to new graduates, including paying for their tuition, so hopefully I will not have a problem paying off my debt when I graduate. A lower interest rate or, as you said, one that is tax deductable, would be perfect for my situation. I'll look into my options better for sure.

Thanks again,

Elizabeth

**Wheetsin** · 09-26-2007, 04:00 PM

Parents' income will effect a student's ability to qualify for grants or other assistance programs, but not loans. At least south of your border.

Michee · 09-26-2007, 07:48 PM

I used a line of credit from Scotia Bank, the interest rate is at prime.

Cindy_D · 09-26-2007, 08:43 PM

Quote:

Originally Posted by lizzie_07

Gaffer,

Thank you so much for the advice.

I currenly have a $30 000 line of credit, $15 000 of which I have used already for living expenses only (my parents are actually paying for my school which has been a big break for me). It's complicated, but basically I will not be going any further into debt over the next 2 yrs, so I decided to put the rest of my line of credit to good use by getting this surgery done now while I'm young and don't have anyone else to worry about but myself.

I will look into a student loan like you said. The reason I haven't is because my parents thought they made too much for me to get one. Now I'm wondering if that even matters...

Also, I am a nursing student and they are offering a surprising amount of money to new graduates, including paying for their tuition, so hopefully I will not have a problem paying off my debt when I graduate. A lower interest rate or, as you said, one that is tax deductable, would be perfect for my situation. I'll look into my options better for sure.

Thanks again,

Elizabeth

Can your parents float you a private loan? I know you said they are covering your tuition, but you really need to watch the interest rates. Your line of credit interest rates may be the best you can get - most LOC are running about 6 - 7 % and that's not bad. Good luck.

Cindy

lizzie_07 · 09-26-2007, 09:26 PM

Can your parents float you a private loan?

I'm not sure what that means. They take out a loan and give me the money? Unfortunately my parents are in enough debt from paying for mine and my brother's tuition. Infact, I have offered for them to use my line of credit if needed in the past. They make a decent income but I'm at one of the most expensive schools in the country.

Elizabeth

Gaffer · 09-27-2007, 09:46 AM

Quote:

Originally Posted by Wheetsin

Parents' income will effect a student's ability to qualify for grants or other assistance programs, but not loans. At least south of your border.

It does to some extent here as well. When I was in university one my first degree my parents helped, but I was finding my indepence and wanted to pay for some too. When I applied my parents made too much. On my second degree though I had lived independent of my parents long enough that their financial standing did not come into the picture. I am not sure how long it is now to be consdered indepedent from your parents though.

Andrew