21 March 2005
Consumers in the UK are being advised to be as honest as possible when taking out personal loans.
The recommendation comes from personal finance group uSwitch.com following the revelation of figures showing that more than 30 per cent of people lie about the reason for taking out a loan.
And of these, over half seek to justify their little white lies by claiming that they thought if they had told the truth then they probably wouldn't have been given the loan.
uSwitch found other common explanations as to why people lied for loans to include embarrassment (14 per cent) and believing that the reason wasn't within the loan suppliers right to know (26 per cent).
Nick White, head of personal finance at the free and impartial comparison website, described the findings as "staggering".
He commented: "With debt having hit the £1 trillion mark last year in the UK, the population is accustomed to taking out loans and borrowing on credit cards - and as our research shows, a staggering one in three of us stretch the truth when applying for loans.
"There have been instances involving consumers who have taken out loans for plastic surgery and subsequently been unhappy with the results - and they have refused to repay.
"Understandably lenders do not want to be put in this position and some now refuse to provide loans for plastic surgery. However, it is frustrating for those consumers who are turned down having told the truth - despite having every intention of repaying the money."
Mr White continued to say: "Ultimately we would urge consumers to be honest when applying for loans, and to only borrow more money than they need if they can comfortably afford to do so."
USwitch's research also interestingly revealed that 54 per cent of people admitted to taking out a larger loan than necessary, with 38 per cent borrowing more than £10,000 extra.
Compare all UK personal loans at uSwitch.com and find the one to suit your needs.
© 2008 Adfero Ltd
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