How do you spend yours?
There are quite literally hundreds of uses that consumers put personal loans towards. However, some reasons appear to be more popular than others.
New studies conducted by one of the UK’s most popular lenders has revealed that over 40% of loan applicants are looking to source additional funds with the intention of acquiring a new vehicle. Reportedly, over 23% were looking to purchase a pre owned car, 13% purchase a new car and a remaining 4% use their loans to purchase boats, trailers, caravans and bikes.
35% of those borrowers surveyed said they were looking to consolidate any outstanding credit by using one larger loan, typically with a lower APR than they were already currently committed to. Typically, Debt loans are amongst the most popular reasons for consumers to borrow, although different times of year tend yield differences in demand.
The remaining 25% of borrowers applied for a secured homeowner loan, with the intention of modifying or remodelling their homes. Home improvement loans have seen a stark increase in demand over recent years. There are numerous reasons to explain the rise, although the most common tend to be: -
- Opportunists – Homeowners looking to further increase the value of their homes through extensions or conversions of dormant space.
- The Media – Analysts suggest that home improvement loans have increased in popularity, due to an increase in DIY/home improvement TV shows, which encourage viewers to frequently change their homes.
Other popular reasons for procuring loans include cosmetic surgery, vet bills and holidays. It is also suggested that the majority of borrowers hail from North Westerly Britain.
