Halifax Personal Loans Reveal Consolidation Popularity

Financial Services > Personal Loans > News

Mon, 08 Jun 2009

New figures from Halifax Personal Loans have revealed that 54 per cent of such loans are being used by people to consolidate their existing debt . Borrowers often take out consolidation loans in order to pay off credit forms such as store cards, which have exorbitant interest rates, in an effort to make repayments on their debts more affordable.

Halifax supported the findings of recent studies which revealed that new car purchases are the reason for many people taking out personal loans, with such loans accounting for 23 per cent of the personal loan market. 15 per cent of loans, meanwhile, are obtained to fund home improvements, whilst a significant proportion of loans are intended to fund a business investment or training programmes to improve a borrowers employability. Such training courses include driving instruction training, pilot license fees and even ski instructor courses.

Halifax also cited the repayment free first three months of taking out some loans as a welcome bonus of borrowers, who are afforded a breathing space. Experts have warned, however, that interest rates may rise on both secured loans and unsecured personal loans given that lenders will be looking to maintain their profit margins in the wake of the ban of the sale of payment protection insurance alongside loans.

Link to this page

Personal loans news
BBA Reveals Home Loan Dip - Mon, 26 Jul 2010
Government to Conduct Personal Loan Review - Thu, 22 Jul 2010
Positive Home Loan Trend Continues in May - Fri, 16 Jul 2010
More News