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The annual Halifax Unsecured Personal Loans review takes a look at what consumers are using personal loans for.

The research reveals it’s not just home improvements and cars that motivate Brits to apply for loans; there is a continued trend when it comes to investing in ourselves ….

The Halifax Unsecured Personal Loan review found just over half (54%) of loan applicants in 2008 took out an unsecured personal loan to allow them to consolidate existing debts, often moving money from more expensive products such as store cards to reduce the cost of their borrowing. Whilst one in six (15%) acquired a loan to allow them to make improvements in and around their home.

Motor Mania
Almost a quarter (23%) of Halifax loan applicants took out an unsecured personal loan in 2008 to help buy a new or used car. Halifax’s research reveals that this trend is continuing in 2009 with 22 per cent of Halifax loan applicants wanting to borrow money to purchase a car this year.

Self Investment
The Halifax Unsecured Personal Loans data reveals a trend in the number of consumers who are investing in themselves. It seems that people are continuing to improve their own skills with many choosing to undertake training or study.
Applications for Halifax Unsecured Loans over the past year for such purposes have included:
• Altitude Training
• Driving Instructor course
• Pilot license
• Ski Instructor’s course
• Corgi examination/registration
• Astro Observatory

Less Conventional Applications
Over the past year, other reasons for applications have been varied and diverse, including:
• Fine Art
• False Teeth
• A Microlight
• A Beach Hut
• Cattle
• A Mobile Disco
• Publishing book/Memoirs

Russell Galley, Director of Loans at Halifax, has cpmmented:
“Our research shows that loans are taken out for a wide variety of reasons. Similar to the last annual review there is a continued trend in the number of people who are looking to invest in themselves and their future by undertaking further training or making purchases which will help them work smarter. Whatever your reason for taking an unsecured personal loan, with Halifax you’ll have no monthly repayment for the first three months. This breathing space could help you to pay for other essential extras, such as buying books when taking a course.”

Source: Halifax (halifax.co.uk)

According to a recent research conducted by GfK NOP on behalf of Halifax Credit Cards we do not seem to always be  entirely honest with our other halves on matters of finance.

The Halifax findings revealed that we hide an estimated 217,000 credit cards from our partners.

The research showed that the main reasons for having a secret credit card were:
• To buy ourselves items we didn’t want our partners to know about
• To hide existing debt from our partners
• In case of emergencies

Although the Halifax research showed that there are an estimated 217,000 secret cards in the UK, this represents just one percent of cardholders with a partner. The vast majority of us are open and honest with our partners about our finances.

The biggest purchase made on secret credit cards was modest, with the largest item respondents admitted to buying still being less than £500. Items that secret cards were used for included electrical goods and a holiday.

At a practical level, secret card debt may not be as harmless as it would first seem. When applying for products in joint names, couples may be asked to disclose any outstanding debts – possibly leading to difficult conversations which could otherwise have been avoided.

Source: Halifax Credit Cards