Borrowing Confidence Rises: UK Consumers 4 times More Likely to Borrow

Consumer confidence in the UK has grown 4 times greater in the first 7 months of 2013 than it was in 2012. The research conducted by Hitachi Personal Finance has shown a marked increase in credit applications in that period, indicating the attitude toward borrowing in this economy has improved greatly.

The largest personal loans given out in the first part of 2013 averaged around £7,800. They were received by females from the St. Alband’s commuter belt. The smallest loan average of approximately £4,818 went to males in Harrogate, a town in Yorkshire. The overall UK average for personal loans is £5,707.

Older people borrowed more on average than younger folk. People from 56 to 60 who live in Enfield, and people over 60 years old in Belfast and Romford had an average personal loan amount of £15,000.

Location played a role in loan amount spread as well, with borrowers in the south receiving higher loans overall. West Londoners received an average of £7,741, close to the largest loans in the UK. Telford in Shropshire’s average was just £4,700, which was the lowest.

Theresa Lindsay, the marketing manager at Hitachi Personal Finance, said, “The Bank of England has made it clear interest rates are unlikely to rise until unemployment goes below 7 per cent, which means households are able to budget with certainty and feel more confident about taking on additional credit commitments to afford those things they have gone without through the recession.”

She stated she finds it interesting to guess what people who borrow money may want it for, or what they could afford with the additional cash.

Some examples could be:

• The average St Albans woman who got a personal loan could splurge on 11 pairs of stylish red-souled Louboutins that cost £695 per pair.
• Loan recipients who received the West London average of £7,700 could afford to buy an emerald-cut diamond and platinum wedding ring set from Tiffany & Co.
• People over 56 years old, who borrowed an average of £15,000, may want to enjoy their retirement in a four-bed Sterling Eccles Sport 554 caravan with all options.
• For £8,000, a family could increase the value of their home by refurbishing their entire kitchen.
• UK average loan of £7,990 could get someone behind the wheel of a Skoda Citigo car.

Learn more on car buying tips with the video of Quentin Willson, Motoring Expert.

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