With the costs of medical procedures rocketing sky high, people are taking recourse to loans offered by some credit companies. These loans are especially helpful in procedures that are not covered by general insurance. Today, there are more than 100,000 doctors and dentists who offer loans for up to a year or more on interest-free monthly payments. Though this trend is being hailed by many, consumers should be careful about not becoming a defaulter.

a. Cosmetic procedure loans are just a fraction of the total consumer credit market.
b. Many lending giants like Capital One, Citigroup and the CareCredit unit of General Electric offer these kinds of loans.
c. Big insurance companies and new startups are now devising new medical financing plans with various payback options.
d. These loans are usually for 12 months.
e. This loan is only available to people who have a good credit or who are financially stable.
f. People who take those loans should be able to pay the monthly installments and close the loan on time.
g. If a person defaults, the interest rate increases to 20 percent and more.
h. Credit companies also loans with 12 per cent to 13 per cent interest payable over several years.
i. But a zero per cent loan cannot be converted to the longer-term program midway.