Loans And Financing Options For Addiction Treatment

Medically reviewed by

Isaac Alexis, M.D., AAMA, AMP-BC

March 6, 2019

Today, a variety of loans exist—some even designed especially for substance abuse treatment, as well as numerous other financial options, including help from loved ones, selling certain assets, health care credit cards, payment plans, sliding fees, and even crowdfunding. Negating your treatment needs could result in decreased well-being, illness and disease, detriment to your career or education, damage to your family life, and even greater financial burden.

When examining drug addiction treatment, there is an unfortunate discrepancy between need and treatment, a gap that exists all across America, regardless of age or family position. A Surgeon’s General report issued in November 2016 asserts that nearly 21 million Americans have a substance use disorder—yet of these individuals, roughly only one in ten receive a form of specialty treatment.

One of the largest stumbling blocks preventing individuals in need of drug or alcohol treatment is a lack of finances—perhaps you don’t have insurance or personal financial means. Sadly, this lack of resources is often misconstrued, as a variety of financial options exist beyond these options, including loans and numerous financing options. When refraining from pursuing treatment, it is important to consider this cost—an addiction will, over time, exert great cost in many ways upon a person’s life.

Untreated, an addiction may cause the loss of quality of life, a wide range of illnesses and diseases; damage to a person’s career, education, or family standing; and numerous other negative impacts—combined, these adverse effects are costly on a physical, mental, and emotional level, and in the long run, financially speaking, they may cost more than treatment.

Understanding Your Investment

Spending any amount of money, whether it be from your personal savings or a loan, is an investment in your future that has the potential to garner a priceless return—the restoration of your life and the possibility of a balanced and fulfilling future, as made possible by sobriety gained from treatment.

When faced with concerns of limited financial resources or cost-effectiveness, many individuals may be inclined to select a form of outpatient treatment. At the onset, this decision may seem financially sound—after all, outpatient treatment programs are generally cheaper, and due to their format you may be able to continue working and drawing a paycheck during treatment. While many outpatient programs are successful, they do have limited resources, capabilities, and effectiveness for certain concerns, while also potentially allowing you to remain influenced by negative triggers and cues associated with drug abuse.

For addiction, especially serious cases, we strongly suggest inpatient drug rehab programs. While these programs are more costly, typically the measure and intensity of care far exceeds that which is available within outpatient care. Additionally, for those with professional or executive demands, a variety of inpatient rehabs will actually allow you to continue working and devoting time to your career within treatment.

An inpatient program costs more due to the residential format—living on site allows you to become immersed in your treatment and removed from the temptations of your former life, while having continued access to support and guidance around-the-clock. Within these programs, you will typically encounter a greater variety of treatment modalities and engaging activities, delivered in a more rigorous and thorough approach.

Should I Consider My Personal Finances?

When confronted with the cost of a treatment facility, it can be daunting to compare that number against your personal savings or retirement accounts (IRA, 401K, or life insurance fund). Financing your treatment by your own means may be intimidating, however, if you obtain sobriety, the long-term benefits to your life, health, and finances may make this one of the wisest choices you will ever make. Even if you can’t afford to pay for the entirety of your treatment, perhaps you will be able to fund a partial amount.

Can I Ask A Loved One?

An addiction can negatively impact your loved ones, however, oftentimes, when confronted with a loved one’s addiction, friends and family may be wary about giving an addicted individual money and enabling their drug or alcohol abuse. This is understandable, and for this reason, if they do want to consider assisting you with your treatment needs, they can approach the facility directly and make payment arrangements.

What Are The Other Ways To Finance Treatment?

Though employing one of the above may be ideal to avoid what could potentially be high interest rates associated with some of the following options, these options may not always be feasible. If you find that you, and your loved ones, cannot afford to pay for treatment on your own, there are yet a variety of ways that you may finance your endeavor towards sobriety. These include:

Liquidating some of your assets: Perhaps you have an extra car; a recreational vehicle, such as a boat or RV; or a vacation property. As difficult as it may be to give up these venues for fun and entertainment, consider the fact that within an addiction, your sense of pleasure, fulfillment, and commitment to leisure and family time is often drastically impaired.

Crowdfunding: A relatively new concept in the scheme of financing that has gained significant momentum over the past several years, crowdfunding may be a viable resource for certain individuals looking to finance their treatment. Various services exist, including GoFundMe and Generosity by INDIEGOGO, which allow an individual or their loved ones to set up a campaign to raise money for a cause, in this case substance abuse treatment.

Payment arrangements: Certain facilities may have payment plans in place to make financing treatment more accessible. A payment plan allows you to make installments, rather than making the entirety of the payment within a short period. Examples include monthly payments, which may be automatically withdrawn, or a graduated payment plan, where the payments rise incrementally over time.

Sliding Fees: Treatment facilities understand that treatment can be expensive for many individuals, because of this, some programs offer sliding fee scales based upon a person’s income. For those who qualify, a sliding fee may reduce a person’s overall cost of treatment.

Health care credit: Medical bills can be expensive, and not everyone is able to save the money for these events. Health care credit was created to supplement this need, and depending on your credit score, it may provide you with a credit line that can cover the entirety, or a portion, of your treatment. Be forewarned, interest rates may be high, though some programs do offer promotional, interest-free periods if the balance is paid in full within a certain period.

Personal credit card: Though this option may be tempting, it is one that should require significant thought and planning, as these cards may also wield high interest rates, especially when compared to loans. If you foresee that you will likely be able to pay off the interest quickly, this may be an option.

Personal loan: If you have a good credit score, speaking to your bank or credit union about your loan options may be a good idea. These loans vary on amount, but may offer you assistance in whole, or in part, towards the overall treatment expense and may have relatively low interest rates.

Other loans: If your credit is not good enough to receive an unsecured loan (one without collateral) you may still have options. Some lending institutions may allow you to refinance your vehicle, using your automobile as collateral, while others allow you to use your home as collateral, within a home equity loan, both of which may then be used for treatment expenses.

Substance abuse treatment loans: Certain financial institutions specialize in providing loans specifically designed for substance abuse treatment, which may offer lower interest rates than other options. These may vary, but in example, certain lenders offer loans between $5,000 and $100,000; amounts may change depending on your credit score. You may apply one of two ways, either directly through the lender or through the assistance of a rehab facility—many facilities have a specific institution that they already work with. Some even design options for those with credit scores that are less than optimal.

Before making any significant decision concerning your finances, you may want to consider talking to a financial advisor to fully examine your options and determine if any combination of these are financially viable options for you.

Selecting a treatment program is a big decision, one that should be made only after considering every element involved, including not only finances, but the drug of abuse, the length of addiction, health and medical history, incidence of co-occurring mental health disorders, family or employment situations, and any other pertinent factors that are unique to you. In addition to these financing options we’ve discussed, you may be able to receive assistance in other ways—a variety of scholarships and grants exist to further aid individuals in receiving individualized care for their treatment needs.

We Can Help You Design And Implement Your Treatment Goals

If you’re concerned about your financial standing and your drug abuse treatment options, look no further. Our expert staff understands these pressing needs and is standing by to offer you even more guidance and resources on these important, and life-changing, subjects. RehabCenter.net wants to aid you in making your treatment needs a reality. Contact us today.