Consumers now a days are using personal loans now to pay for cosmetic and medical procedures, whether needed or not. With the rise of cosmetic surgery, personal loans have become the new way to pay for procedures, whether needed or only for aesthetic reasons now.
Since there has been a rise in cosmetic surgery, even with the recession in full swing, the British Association of Aesthetic Plastic Surgeons, also known as BAAPS, notes that procedures have exceeded 36,400 in the year 2009 alone. This means that there has been a 6.7% over all increase since 2008 alone. The largest cosmetic surgery provider in the UK, the Harley Medical Group, has seen an overall growth increase of 4% for the 2008 and 2009 fiscal years. They saw a 23% increase in abdominoplasty and a 13% increase in liposuction procedures.
They have noticed, that regardless of the recession, both non-surgical and surgical procedures are more popular than ever. Also, data from the Sainbury’s Bank shows that consumers and patients are looking at and comparing personal loans more and more to pay for these procedures and medical surgeries.
Sainbury’s Bank shows that Britons have borrowed £11.57m in personal loans last year alone. There were over 800 loans, which totaled £5m of the amount above that were used for cosmetic surgeries. The other portion, the £6.8m covered elective and medically necessary procedures, such as hip replacement. Procedures such as joint replacement is covered by the NHS, however the wait list is too long, many patients are serious pain and discomfort and many patients decide to pay the £7,000 to £9,000 themselves.
Sainbury’s Finance departed commented that although many loans are taken out for home improvements, buying cars, buying other luxury items and vacations, there is a high number of loans that are used strictly for cosmetic expenses that people feel they need.
Financial advisers note that loans should be compared when looking to cover medical and cosmetic procedures before any loan paper work is filled out. In the long run, this could save a person anywhere from hundreds to thousands of pounds in repayment fees and interest.