Loan apps double in Jan
The most common time of the year for consumers to amass most in the way of personal loan and credit card debt is January, reveals a new report.
Although it may not come as much of a surprise to many readers, recent statistics reveal that loan applications increase by more than 100% throughout the month of January, faired against any other time in the year. It has also been revealed that loans sourced by consumers, whose intention is to consolidate their outstanding credit are amongst the most popular reasons to borrow.
Many Brits often regard January, as being the ideal time to review their financial commitments and find more efficient ways to manage their monthly outgoings. Credit card debts, mortgage arrears and a general overspend at and around the Christmas period are the most common motivators for consumers to find more appropriate means of bottlenecking their spend, thus directing the vast majority of borrowers towards consolidation loans.
It has also been found that unsecured loans form the bulk of personal loan borrowings in January, with experts suggesting that the increased risks that are associated to secured loans become more of a turnoff when the purse strings have tightened.
