Category: General

Does The United States Need Loans for Medicines?

Does The United States Need Loans for MedicinesRepresentatives of pharmaceutical market announce that loans for medicines are intended for patients who urgently need expensive treatment in expensive healthcare facility.

Such a loan with a high degree of probability can be in demand only when buying drugs that cost is over $500 per pack/bottle. The share of such drugs accounts for 5% of the lending market.

We have found the story of one family that was obliged to cover bills for expensive medications with online loans. Mr. Green and his wife analyzed the lending market especially online lenders as they have no time to collect papers for banks. They make up a decision to apply for payday loans in CT as they offer the most favorable terms and rates. It doesn’t ask and estimate the reason why we need money, it helps avoid many issues. Our son survived. This is the best thing ever happened.

There is another problem with the offer to buy medicines on credit: every credit card holder can buy pharmaceutical goods on credit using them. According to statistical data, the majority of individual clients of pharmacies have personal credit cards, and it is much easier to use an existing payment option.

Banks and pharmacies may need such a partnership in order to attract new customers, financial experts suggest.

However, the banks and pharmacies surveyed are not going to attract new customers in this way. Clients may use credit cards to cover such expenses, but it is not excluded that some Americans may not issue credit cards. It contributes to the development of an idea of medicines on credit.

As stated, American Bank is not interested in such a partnership. The bank is now focusing on non-targeted loans and credit cards – these products allow customers to not be limited to any one category of goods. According to experts, such highly specialized products are gradually leaving the market altogether. It is not favorable to issue a loan exactly at the pharmacy store.

What’s wrong with medicine loans?

Low-income and disadvantaged population falls into the risk zone for such loans. There is also a possibility that the loan will be issued to an elderly person.

The debt burden on such people is growing. According to the National Credit Bureau, in January-August 2019, the average size of consumer loans increased the most for a group of borrowers over 60 years old. According to the data estimated, the share of pensioners among borrowers from 2014 to 2018 increased by 4% up to 15%.

Financial issues can be bad for the banking sector as a whole. The growth in the debt burden of Americans is already assessed as quite high, and the situation in consumer lending is increasingly causing concern among the authorities.

Experts also warn clients of reputational risks. They can arise in a situation when a person does not pay the loan back, and the case goes to court. There is a possibility that the court will decide that “the loan was taken under force majeure circumstances – for example, the threat of death of a loved one from lack of medicine.”

In this case, the lender receives reputational risks, and public opinion will be on the borrower’s side.

As we can see, the USA doesn’t need loans on medicines issued in the pharmacies directly. Americans prefer using credit cards or payday loans to cover such expenditures.