Hefty Loans for Cosmetic Surgery

Money...money...money (Credit: tracy_olson)

Women who want to go in for nips and tucks are turning to high-interest loans to finance their surgeries.

Finance companies issue loans that allow the borrowers to pay off a breast enlargement at about $60 a week, or $150 a week for a stomach tuck, on a typical five-year loan.

But consumer groups and some surgeons say the finance companies are "exploiting" those desperate to change their appearance.

Christopher Zinn, spokesman for the consumer group Choice, said loans for cosmetic procedures often had higher interest rates than many credit cards, also a popular way to pay for the operations.

Australian Society of Plastic Surgeons spokesman Dr Norm Olbourne said borrowers were at risk of being exploited by some finance companies that market their loans as a simple way to pay for cosmetic surgery.

But finance companies argue their interest rates are competitive, and repayment options more flexible than traditional loans.

Loans for cosmetic procedures account for half of all business for finance company Mediplan.

Chief operating officer Stuart Johnson said the company charged 14.7 per cent a year interest.

He said potential borrowers were interviewed in the same way as any loan customer.

Loans are generally secured through other assets.