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