Who takes out finance to fund medical expenses?
Written by Robert Bester, Consumer Finance Expert Robert has been a writer for six years, specialising in consumer finance and the UK lending market. Concentrating on consumer credit products, Robert writes informative articles that help customers manage their personal finances efficiently.
30th November 2020
2 minute read
18 - 24 year olds are more likely to take out personal finance to cover medical expenses than any other age group according to personal finance experts moneyguru.com.
In the wake of the 70th anniversary of the NHS, moneyguru.com revealed that in the last twelve months alone over 34,000 young people aged between 18 – 24 applied for a loan to cover medical bills, 13 percent more than any other age group. From all the reasons for a loan application, which also included finance for new cars, holidays, home improvement and more, a huge 32 percent of applications were taken out to cover medical expenses from those under 24.
Over the past twelve months alone there has been an enormous 265 percent increase in loan applications to cover medical bills. This compares with a drop of 82 percent in applications for wedding finance. Applications for credit to fund holidays and home purchases are also down 52 percent and 24 percent retrospectively.
Interestingly over 68,000 singletons applied for personal credit for this purpose, compared with only just under 28,000 applications coming from people in serious relationships.
Does this mean a rising number of young people are turning to cosmetic procedures to keep up with the growing pressure from social media?
According to research from the American Academy of Facial Plastic and Reconstructive Surgeons, 55 percent of facial plastic surgeries in 2017 were from patients who wanted surgery to help them look better in selfies, compared to just 13 percent in 2013! The study also found that 56 percent of surgeons surveyed saw an increase in clients under the age of 30*. Back in the UK, plastic surgeon Dr. Dirk Kremer said that he has seen a huge increase in teens and twenty-somethings seeking help after ruining their natural looks with cheap fillers administered by unqualified practitioners in a desperate bid to look like they do on social media.**
But cosmetic surgery may not be the only reason behind the trend. A report by the Institute of Communications in 2017 shows that growing numbers of patients are paying for private treatment to beat rationing and delays for treatment imposed by the cash-strapped NHS.
The report, titled The Private Healthcare UK Self-Pay Market 2017, cites that there has also been a rise in those paying for private cancer care in the wake of NHS England cutting the number of drugs it pays for under the Cancer Drugs Fund. The report sparked fresh concerns about whether the NHS is struggling to cope with a rising demand for care caused by an ageing and growing population while it also contends with staff shortages and budget squeezes.
Whether waiting lists, cosmetic surgery or care concerns, the trend of young people splashing out on their health and wellbeing does not seem to be slowing down.
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