Money News
Paying for a vehicle - whether it's cars, bikes or caravans - is the most popular reason to borrow, new research from Alliance & Leicester Personal Loans shows. Across the UK, 25% of people borrowed to buy a used car, 12% borrowed for a new car, while a minority 3% took out personal loans to help pay for motorbikes or caravans.
Another 34% said they were re-organising their finances by consolidating other debts - the second most popular reason - after being stung by high interest rates on store cards or finance deals, and converting them into one manageable monthly payment.
The findings also indicate the third most popular reason to take out a personal loan is to tackle home improvements, with 20% of borrowers dusting off their tool kits to help tackle home improvements, extending their homes or adding loft conversions.
The research also highlights a host of regional differences.
South West residents favour borrowing to fund all forms of vehicles - including new and used cars, motorbikes and caravans. But when it comes to cars, it's the Scots (13%) who are most likely to plump for the shiny new vehicles, while borrowers on the Borders are thriftier and prefer to choose second-hand motors.
The Scots are also the most house-proud, with 23% using their loan for home improvements. Those in the South are the least likely to take out borrowing to spend on their properties (18%).
Meanwhile, more than one in three borrowers (36%) from London and the South East use personal loans to consolidate debt.
Elsewhere, Northern Ireland boasts the largest proportion of customers opting to borrow to pay for their wedding, while the North West has the greatest proportion of borrowers taking out personal loans to help pay for holidays of a lifetime
02 July 2007 © Moneyextra.com
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