Holiday financing study hints at demand for personal loans

Tue, 13 Feb 2007

Thousands of parents may be in need of a personal loan in the near future after a new study hinted that family budgeting plans could go awry this half-term.

According to a study by banking institution Lloyds TSB, 20 per cent of parents plan to head overseas with their children during the school break.

However, of this group, apparently 41 per cent admit that they expect to spend more than originally intended in their holiday.

Moreover, 17 per cent admit that they purposely do not set financing goals before heading off and a further seven per cent fail to stick to the budgets they set.

Jatin Patel, head of travel and international payments at the banking institution, explained the difficulty of keeping strict financing plans in mind when on holiday.

"Keeping money safe and sticking to a budget can be difficult at the best of times, but when you're on holiday and in unfamiliar surroundings, it can be even more of a challenge," he said.

One option open to people who overspend while abroad is to consider taking out an unsecured loan.

Unlike secured loan deals, these do not use equity such as a home or a car as collateral.

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