Brits ‘keeping quiet about £7.7bn in loans’

Secretive Brits have taken out around £7.7 billion in unsecured personal loans without telling their family or partners, it has been revealed.

Research by Abbey Loans found that around 1.3 million Britons have taken out clandestine funds at an average value of £5,720 each.

The biggest motive for borrowing was found to be paying off existing debts – 56 per cent, followed by home improvements, funding a car purchase and medical needs.

Paul Morrish, director of the firm, said that secret loans are generally an unwise move as people should be “open and honest about their finances”.

“It’s worth doing some research to find the most appropriate deal for you,” he continued. “There are different types of loans that suit different circumstances.”

Over half of those with undisclosed borrowings said they were too embarrassed to tell people about the loan, 29 per cent claimed it is a private issue and six per cent took it out as a surprise for their family or partner.

Equifax recently reported that people who rely on loans during January to consolidate their Christmas debts will find it harder to get approved due to the credit crunch.

© Adfero Ltd

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