Nearly one in five (19%) British adults have used a credit card or personal loan to finance private healthcare, The Exeter reveals.
Exeter’s Consumer Health and Finance Tracker data suggests that a growing number of people are taking on debt to cover healthcare costs they cannot afford with savings alone, as demand for NHS services remains high.
Of those who used private healthcare in the past six months, 40% paid from their own income or savings, 24% paid through an insurance policy and 19% used a credit card or personal loan.
The data shows that 13% of 25 to 34 year olds have taken out a loan to cover healthcare costs, compared to just 3% of people aged 55 and over.
Men are also more likely to borrow than women: 23% use credit cards or loans, compared to 15% of women.
It also found that 21% of British workers save nothing each month, making it much harder to build up savings for private treatment or to meet the extra costs of monthly loan repayments.
In the past six months, 60% of 18 to 34 year olds have used private healthcare, with many financing it through personal finance or loans. However, only 13% of British workers have private health insurance.
The data further highlights how access to healthcare affects people’s ability to work. In the past six months, 19% of men and 16% of women have taken time off due to illness, injury or mental health, underscoring how closely health problems and everyday working life are.
Financial pressures have a wider impact on wellbeing, as 15% of respondents say their finances have had a negative impact on their mental health, and 9% say the same about difficulties accessing healthcare.
Exeter’s head of healthcare distribution, Karen Woodley, said: “It’s positive to see people taking their health seriously and seeking private treatment when they need it. What’s worrying is that the cost of being proactive means taking on debt or tapping savings at a time when you’re already dealing with illness or injury.”
“Managing your health and managing your finances are closely linked, and the two can quickly go opposite directions if an unexpected health need arises without a plan in place.”