| More than one million Britons have taken out a | | | | their partner or members of their family that |
| personal loan without the knowledge of their | | | | they had applied for a loan because they are too |
| partners or family members, new research | | | | embarrassed. Some 29 per cent claimed that the |
| shows. | | | | loan is a private matter, with six per cent |
| In a study carried out by Abbey Loans, it was | | | | reporting it is to help fund a surprise for either a |
| revealed that some 1.35 million UK personal loan | | | | relation or partner. |
| borrowers have taken out such a product in | | | | Commenting on the figures, Paul Morrish, director |
| private. Overall, it was suggested that the total | | | | of Abbey Loans, said: "Borrowing in secret - |
| value of these loans stands at about 7.7 billion | | | | especially large amounts - is not advisable and we |
| pounds, an average of 5,720 pounds per person. | | | | would encourage people to be open and honest |
| Although 54 per cent of such debtors have taken | | | | about their finances. Talking about your financial |
| out 3,000 pounds or less, the average loan value | | | | situation with others can help so that you can be |
| was reported to be "skewed upwards" by the | | | | realistic about what is affordable. However, for |
| five per cent of respondents who are applying for | | | | those who are comfortable they can afford |
| amounts of between 20,000 pounds and 50,000 | | | | repayments, it's worth doing some research to |
| pounds. | | | | find the most appropriate deal for you. There are |
| More than half (56 per cent) of clandestine | | | | different types of loans that suit different |
| borrowers, around 762,000 people, state that | | | | circumstances - and our staff can help talk you |
| they have taken out a low cost personal loan to | | | | through the options." |
| use as a means of debt consolidation, to help | | | | Although taking a low rate personal loan can |
| them pay off money owed to a variety of | | | | provide valuable help with finance, it may be |
| creditors. Just under 199,000 Britons (seven per | | | | advisable for prospective borrowers to ensure |
| cent) look to borrow to assist them with making | | | | they make their loved ones aware of their |
| home improvements, while 100,000 do so to buy | | | | intention. In doing this, it is possible that should |
| a car. In addition, 65,000 consumers purchase a | | | | they later encounter difficulties with their money |
| holiday with their borrowing. Meanwhile, about | | | | management than they will be able to turn to |
| 27,000 borrowers use a UK loan to meet the | | | | friends, family and partners for help. |
| cost of having cosmetic surgery. | | | | Additionally, a cheap personal loan could be a |
| Research from the financial services firm also | | | | cost-effective way to fund the holiday of a |
| revealed that people between the ages of 35 and | | | | lifetime. Speaking earlier this year, Richard |
| 44 are the likeliest to have taken out a secret | | | | Al-Dabbagh, personal loans manager at Alliance & |
| personal loan. On the other hand, the over-65s | | | | Leicester, reported that a low-rate loan could be |
| are most probable to not opt to borrow covertly. | | | | an idea to finance a break as borrowers will be to |
| Abbey Loans also pointed out that 56 per cent of | | | | make manageable low-cost repayments. |
| people questioned reported that they had not told | | | | |