Money News
Nearly two-thirds (62%) of people admit to being reluctant borrowers and try to avoid being in debt as much as possible - but many still regularly use credit, research from Alliance & Leicester Personal Loans has revealed.
Convenience wins over value for many, with 50% of British consumers opting for expensive store cards while shopping, simply because they were offered and were convenient. Similarly, when signing up for forecourt finance from a car dealer, almost as many (42%) admit to taking it out at the time of purchase simply because it was handy.
However, a savvy minority of borrowers save on finance and are happy to research, plan ahead and cash in on cost-effective credit deals, with around 12% seeing their borrowing as an appropriate way to spread costs for major purchases like a new car or home improvements.
The data has also revealed a host of other findings about attitudes to borrowing with notable differences between men and women: 32% of women favour using an overdraft - compared to 25% of men; 11% of women regularly use store cards - compared to 4% of men; and 21% of men have opted to sign up for a car showroom finance deal - compared to one in seven (15%) women.
Age may also influence the way consumers borrow. Car finance, for example, is shunned by under-25s, with just 6% saying they have opted for it - compared to more than 22% of over-55s. And 40% of 35 to 44 year-olds say personal loans are their preferred means of borrowing - compared to 11% of under under-25s.
04 June 2007 © Moneyextra.com
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