Credit Strategy
LinkedIn
Twitter
0 £0.00
This item was added to your basket

Dear visitor,
You are viewing 1 of your 2 free articles


To view more free articles, please register

Free registration or Login

Study shows Brits’ soaring appetite to borrow

One in four people want to borrow half their annual salary when enquiring about loans, according to a study by Moneysupermarket.com.


Amber-Ainsley   Pritchard

Share on Twitter Linkedin black
Amber-Ainsley   Pritchard
Share on Twitter Linkedin black

The price comparison site analysed three million loan enquiries made between January 2015 and March 2017 to reveal how much Brits wanted to borrow and what they planned to spend it on.

 

Researchers found that in 2016, Brits wanted to borrow a total of £12.4bn through personal loans - an average of £8,765 per person.

 

Moneysupermarket.com said the typical person enquiring about a loan wanted to borrow the equivalent of 36 percent of their annual income. The site also found one in four people would like to borrow the equivalent of at least 50 percent of their yearly salary.

 

The study also found that 75,000 consumers, who enquired about loans during 2016, wanted to borrow more than they earned in 12 months. On average, this group requested 140 percent of their annual salary.

 

Researchers also found that among the reasons Brits wanted to borrow, the biggest increase between 2015 and 2017 was to fund weddings.

 

The number of loans taken to pay for weddings increased by around nine percent during this two-year period, with the average consumer wanting to borrow £7,600.

 

The second highest increase among the reasons for borrowing was for car loans. The amount a Brit wanted to borrow for a car loan increased by £581 between 2015 and 2017.

 

Kevin Pratt, consumer affairs expert at Moneysupermarket.com, said: "The amount consumers are looking to borrow using personal loans has increased across the board.

 

“This might be a sign that, despite falling disposable income and rising inflation, Brits are still determined to fund those things they find important."

Share on Twitter Linkedin black
Add New Comment

YOU MIGHT ALSO LIKE


LATEST IN ANALYSIS


The CS Interview

The patriot

The patriot

Features

Ahead of the curve: Five reasons why Intelligent Environments secured the Best Collections Technology Award
Share on TwitterLinkedin black

Ahead of the curve: Five reasons why Intelligent Environments secured the Best Collections Technology Award

Opinion

“It's time for us to address gender diversity”
Share on TwitterLinkedin black

“It's time for us to address gender diversity”

Bank NPL analysis

Banks continue purge of bad debt from balance sheets

Banks continue purge of bad debt from balance sheets

Events

Credit Week 2018

Credit Summit

CDSP European NPL

Women in Credit Awards 2018

ENJOY READING?

Credit Strategy
LinkedIn page

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace.
@ Copyright Shard Media Group