UK health and life insurer The Exeter has released new data from its Consumer Health and Finance Tracker, showing that almost one in five (19%) UK adults have used a credit card or personal loan to fund private healthcare. The data points to a growing number of people taking on debt to cover healthcare costs they cannot meet from savings alone, as demand on NHS services remains high.
The Exeter’s data highlights the growing risk of debt to fund private healthcare
Of those who have used private healthcare in the last six months:
- 40% paid from their own income or savings
- 24% paid through an insurance policy
- 19% used a credit card or personal loan
The gap across age groups is significant, with more than one in 10 (13%) of 25 to 34-year-olds having taken out a loan to cover healthcare costs compared to just 3% of those aged 55 and over. Men are also more likely to borrow than women, with 23% using credit cards or loans versus 15% of women.
This is particularly concerning given that 21% of UK workers save nothing each month, making it much harder to build up savings for private treatment or absorb the extra cost of monthly loan repayments.
Ongoing NHS pressures affect decision making
While the NHS continues to provide essential care to millions of people across the UK, it is under extreme pressure, with 49% of UK adults expecting waiting times to increase and 33% expressing a lack of confidence that their healthcare needs will be met.
This shift is particularly visible among younger adults. 60% of 18 to 34-year-olds have used private healthcare in the last six months, with many funding this through personal finances or borrowing. However, only 13% of UK workers have private health insurance in place.
The financial and personal toll
The data further highlights how healthcare access is affecting people’s ability to work. In the last six months, 19% of men and 16% of women have taken time off due to illness, injury or mental health, underlining how closely health challenges and day-to-day working life are connected.
The financial pressure is having a broader impact on wellbeing, too. 15% of respondents say their finances have negatively affected their mental health, and 9% say the same about difficulties accessing healthcare.
“Seeing people take their health seriously and seek out private treatment when they need it is a positive thing. What’s concerning is when the cost of being proactive means taking on debt or draining savings at a time when you are already dealing with illness or injury. Managing your health and managing your finances are closely linked, and the two can quickly pull in opposite directions when an unexpected health need arises without a plan in place.”
Karen Woodley, Head of Healthcare Distribution at The Exeter
“It’s clear from the data that we’re still underestimating how deeply healthcare-related financial pressures affect emotional wellbeing. One in seven people say their finances have negatively affected their mental health, and nearly one in ten say the same about difficulties accessing healthcare.
When people are worried about how they’ll pay for treatment, or whether they’ll be able to access the care they need at all, it creates an additional layer of stress at an already difficult time. Having access to healthcare can provide reassurance, certainty and a greater sense of control when facing ill health.
That’s why affordable healthcare options are so important. Everyone should have the opportunity to access support that meets their needs and budget, helping to reduce financial anxiety and ensuring concerns about cost don’t become a barrier to seeking care when it’s needed most.”
Dawn Prescott, Head of Healthcare Proposition at The Exeter
