Definition

Setting aside funds and plans for unexpected events or downturns. Being ready helps you act quickly when challenges pop up.

What to consider

  • Review all payment plan terms before enrolling.
  • Ensure the plan fits within your monthly budget.
  • Understand any interest or fees that may apply.

Real world scenarios

  • After a minor surgery, Kevin enrolls in a hospital payment plan to spread out his bill over several months.
  • Susan negotiates a payment plan with the hospital to manage the cost of an unexpected emergency room visit.
  • Mark opts for a structured payment plan after a prolonged hospital stay to avoid financial strain.

Related terms

Entrepreneurial Finances