Wedding personal loans soar, says Abbey

Mon, 20 Feb 2006

Personal loans taken out to pay for weddings showed a year-on-year increase of 32 per cent in January, Abbey reports.

In comparison, personal loan applications associated with divorce costs decreased by five per cent in January.

The bank says that the start of a new year is a popular time for people to take out unsecured personal loans to consolidate debt or pay for holidays, but this year saw a significant increase in personal loans to pay for weddings.

In the first two weeks of January, a 68 per cent increase since 2005 was noted in the number of personal loan applications intended to pay for outstanding taxes.

Personal loans intended to fund cosmetic surgery saw a rise of 50 per cent, while an increase of ten per cent was reported in personal loans taken out to pay for funerals.

"January is traditionally a time for people to sort out their finances and consolidate debt, which is still the number one reason why people apply for an unsecured personal loan," comments Paula Ickinger, the head of personal loans marketing at Abbey.

"Consolidating various credit card balances and other loans under one roof is usually the best, most cost efficient way to reduce monthly outgoings."

The first month of the year saw a drop of 14 per cent since January 2005 in the number of personal loans taken out to pay for vehicle costs.

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