HEALTH AND WELLNESS
purchase.
In the end, it's important that people have access to health and wellness care for themselves, their family and pets. As healthcare costs continue to rise, it is critical consumers be aware of the various benefit programs and payment options to plan for health and wellness costs. Financial literacy is key!
options. Health and wellness credit cards, such as CareCredit, that offer deferred interest financing, enable you to pay for care over time with the opportunity to avoid interest charges, making out-of-pocket costs more manageable. Here are a few things about deferred interest financing to consider:
* Deferred interest: No interest is assessed if the balance is paid in full by the end of the promotional period.
* How deferred interest promotional financing works. Deferred interest financing allows consumers to avoid interest charges on larger expenses if they are paid off before the promotional period ends. If you don't pay off the full balance before the promotional period ends, you will have to pay interest that has accrued as of the transaction date.[iii]
* The required minimum monthly payments. Understand the required minimum monthly payments and if those payments will pay the balance off in time. Online calculators, such as CareCredit's payment calculator, are a valuable resource to estimate possible monthly payments needed to pay off the balance within a given promotional period. Those payments may be more than the lender's monthly minimum payment requirement.
* Mark your calendar for when the promotional period ends. It is important to track and pay the balance of the purchase before the end of the promotional period to avoid paying the deferred interest that has accrued on the
[i] McKinsey & Company. January 16, 2024. The trends defining the $1.8 trillion global wellness market in 2024. https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/the-trends-defining-the-1-point-8-trillion-dollar-global-wellness-market-in-2024
[ii] Kaiser Family Foundation (KFF). March 1, 2024. Americans' Challenges with Health Care Costs. https://www.kff.org/health-costs/issue-brief/americans-challenges-with-health-care-costs/
[iii] LaToya, Irby. December 30, 2021. How Do Zero Interest Promotional Rates Work." The Balance. https://www.thebalance.com/how-credit-card-promotional-rates-work-960226