More than one million Britons have taken out a personal
loan without the knowledge of their partners or family
members, new research shows.
In a study carried out by Abbey Loans, it was revealed that
some 1.35 million UK personal loan borrowers have taken out
such a product in private. Overall, it was suggested that
the total value of these loans stands at about 7.7 billion
pounds, an average of 5,720 pounds per person. Although 54
per cent of such debtors have taken out 3,000 pounds or
less, the average loan value was reported to be "skewed
upwards" by the five per cent of respondents who are
applying for amounts of between 20,000 pounds and 50,000
pounds.
More than half (56 per cent) of clandestine borrowers,
around 762,000 people, state that they have taken out a low
cost personal loan to use as a means of debt consolidation,
to help them pay off money owed to a variety of creditors.
Just under 199,000 Britons (seven per cent) look to borrow
to assist them with making home improvements, while 100,000
do so to buy a car. In addition, 65,000 consumers purchase
a holiday with their borrowing. Meanwhile, about 27,000
borrowers use a UK loan to meet the cost of having cosmetic
surgery.
Research from the financial services firm also revealed
that people between the ages of 35 and 44 are the likeliest
to have taken out a secret personal loan. On the other
hand, the over-65s are most probable to not opt to borrow
covertly.
Abbey Loans also pointed out that 56 per cent of people
questioned reported that they had not told their partner or
members of their family that they had applied for a loan
because they are too embarrassed. Some 29 per cent claimed
that the loan is a private matter, with six per cent
reporting it is to help fund a surprise for either a
relation or partner.
Commenting on the figures, Paul Morrish, director of Abbey
Loans, said: "Borrowing in secret - especially large
amounts - is not advisable and we would encourage people to
be open and honest about their finances. Talking about your
financial situation with others can help so that you can be
realistic about what is affordable. However, for those who
are comfortable they can afford repayments, it's worth
doing some research to find the most appropriate deal for
you. There are different types of loans that suit different
circumstances - and our staff can help talk you through the
options."
Although taking a low rate personal loan can provide
valuable help with finance, it may be advisable for
prospective borrowers to ensure they make their loved ones
aware of their intention. In doing this, it is possible
that should they later encounter difficulties with their
money management than they will be able to turn to friends,
family and partners for help.
Additionally, a cheap personal loan could be a
cost-effective way to fund the holiday of a lifetime.
Speaking earlier this year, Richard Al-Dabbagh, personal
loans manager at Alliance & Leicester, reported that a
low-rate loan could be an idea to finance a break as
borrowers will be to make manageable low-cost repayments.
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Abbi Rouse writes for All About Loans. Visist us today to
apply for secured UK loans, low cost personal loans, and
loans for tenants. Visit today
http://www.allaboutloans.co.uk
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