20 June 2005
Nationwide Building Society has issued its debut report on the personal loans market, and industry first in that it focuses on personal loans, distinguishing them from more general unsecured lending products.
The report, which excludes credit cards, overdrafts, store credit and car finance, has revealed that the popularity of personal loans is increasing among customers who are seeking to reduce their debts.
According to the study, 2.4 million personal loans were agreed in the first quarter of 2005, totalling £13.5 billion and outpacing the growth of credit card borrowing.
The report found that the majority of loans were for cars, home improvements and debt consolidation.
Commenting on the figures, Stuart Bernau, executive director of Nationwide, said: "It appears that the personal loans market remains buoyant despite a gradual slowdown in other sectors of the economy.
"Whilst consumers are generally easing off from borrowing more and focussing on clearing existing credit commitments, personal loans appear to remain a popular vehicle for tidying up household finances in a relatively low cost and structured way."
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