How to Finance Plastic Surgery

Need a Lift? How to Finance Plastic Surgery

Plastic surgery can do more than just alter your appearance-it changes your bank account, too. That's because this type of surgery is expensive, and is seldom covered by insurance. Before you proceed, carefully analyze your financing options-including a home equity loan.

The Billy Joel tune, "Just the Way You Are," has few fans among the ranks of plastic surgeons. They'd rather have people change the way they look, and spend quite a big chunk of change in the process.

Facing the financial facts

Many people opt for plastic surgery as a means not only to improve their appearance, but also their state of mind. The concept is that if you look better on the outside, you'll feel better on the inside.

Unfortunately, it's very pricey, and many people need some sort of financing to afford it. One option worthy of consideration is a second mortgage, because the rates are likely to be lower than with other types of loans. There are two types of second mortgages-the home equity loan and the home equity line of credit (HELOC). Both use your home as collateral for the loan and, on both, the interest is tax-deductible. But if you prefer a fixed rate and a fixed payment, the home equity loan warrants extra consideration

Picking the right financing option also influences your state-of-mind. If the idea of interest rates rising makes you uneasy, for example, you'll probably want to choose a fixed-rate home equity loan. Once you close on one, the payment and the rate can't change. With a HELOC, your loan has a variable rate. If rates spike, you'll be faced with the unsettling task of paying more for interest charges.

Other options may not cut it

Even though home equity loans are generally the most cost-effective way to finance plastic surgery, consider all your options. Many doctors offer financing packages. Take a careful look at each offer, and compare the rates and fees with other loan packages. Also, review your employment insurance policy and any additional supplemental insurance you may carry. Some forms of supplemental insurance do cover plastic surgery.

One option you should avoid is paying for the surgery with a credit card. Most of them have double-digit interest rates, which will cost you dearly over the long run. You could consider paying with a credit card, and then transferring the balance to another with a 0 percent balance transfer interest rate. If you make that choice, be prepared to pay down the loan after the 0 percent period is over.

Ironically, most people who choose a form of financing, like a credit card or a consumer loan eventually consolidate the debt into a home equity loan to save money. Don't waste time or money-consider paying for your plastic surgery with a home equity loan right out of the gates. In the end, both you and your finances will look good for years to come.

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