Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
One in Five UK Adults Use Loans to Fund Private Healthcare
Nearly one in five (19%) UK adults have used a credit card or personal loan to pay for private healthcare, according to new data from The Exeter’s Consumer Health and Finance Tracker. The findings highlight a growing trend of individuals taking on debt to cover healthcare costs that cannot be met from savings, as demand on NHS services remains high.
Of those who accessed private healthcare in the last six months, 40% paid from their own income or savings, 24% used an insurance policy, and 19% relied on credit cards or personal loans. The data also shows that 13% of 25 to 34-year-olds have taken out a loan for healthcare costs, compared to just 3% of those aged 55 and over. Men are more likely to borrow than women, with 23% of men using credit cards or loans versus 15% of women.
The report notes that 21% of UK workers save nothing each month, making it more difficult to build up savings for private treatment or manage loan repayments. In the last six months, 60% of 18 to 34-year-olds have used private healthcare, with many funding this through personal finances or borrowing. Only 13% of UK workers have private health insurance.
The Exeter’s data also highlights the impact of healthcare access on work. In the last six months, 19% of men and 16% of women have taken time off due to illness, injury, or mental health issues. Financial pressures are affecting wellbeing, with 15% of respondents saying their finances have negatively impacted their mental health, and 9% reporting the same due to difficulties accessing healthcare.
These findings may be relevant for letting agents and inventory clerks, as financial and health pressures can affect tenants’ ability to pay rent or maintain properties, and may influence demand for rental properties with access to private healthcare options.
Source: Mortgage Strategy