28 June 2007
More Britons than ever are taking out personal loans to keep them on the road, research has found.
According to a poll by Alliance & Leicester, buying a car is the most popular reason behind a consumer's decision to take out a personal loan - with two out of five motorists in the UK taking out personal loans in order to buy a vehicle.
One in four people borrowed to buy a used car, while one in eight used their personal loan to splash out on the newest model.
Alternatively, 3% of Britons now take out personal loans to pay for a motorbike or caravan.
Richard Al-Dabbagh, Alliance & Leicester senior personal loans manager, said: "It seems that a lot of people are using a personal loan to buy a car, with 37% of our borrowers taking out a personal loan specifically for that reason.
"A little more surprising, perhaps, is that a small but growing number of people are getting a personal loan to purchase a caravan.
"These might be an eco-minded few, but it seems an increasing number of people are turning their backs on airport queues, train delays and other negative holiday certainties."
The second most popular reason for opting for a personal loan was to consolidate existing debt from store cards or finance deals to convert them into one manageable monthly payment.
Indeed, over a third of borrowers (36%) from London and the south-east use personal loans to consolidate debt, the study found.
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