Brits Taking Out GBP7.7 Billion Worth Of Secret Loans

Wed, 30 Jan 2008

Over 1.3 million Brits have secretly taken out loans worth £7.7 billion without their family members or partners knowing, according to research from Abbey Loans .

The bank found that the average size of a secret loan is £5,720 and that five per cent of recipients are forced to take out loans undercover to cover debts of between £20,000 and £50,000.

In total, 56 per cent said the covert loans were taken to cover debts, while 15 per cent said they were required for home improvements and five per cent for holiday costs.

The research also revealed that two per cent of secret borrowers, roughly 27,000 people, used the cash to finance cosmetic surgery .

"Borrowing in secret, especially large amounts, is not advisable and we would encourage people to be open and honest about their finances," said Abbey Loans director Paul Morrish.

"Talking about your financial situation with others can help so that you can be realistic about what is affordable."

He went on to suggest borrowers, whether clandestine or not, need to ensure they compare loans across the market to find the most suitable deal as "there are different types of loans that suit different circumstances".
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