Loans for weddings and a funeral

In January there was a sharp increase in personal loans taken out for weddings, as well as for funerals.

Figures from Abbey show that, compared with the same month last year, there was a 32 per cent increase in applications for unsecured personal loans for weddings in January.

Adding to the picture of a Britain in love, the bank also noted a five per cent fall in the number of people trying to take out a personal loan to cover the cost of divorce.

But the happy picture was not universal.

January also saw a ten per cent increase in the number of personal loan applications for funerals.

And while post-Christmas debt-consolidation remained the number-one reason for taking out a loan, there were also sharp increases in the number of personal loan applications for cosmetic surgery (up 50 per cent) and holidays (up five per cent), while the number of people applying for a personal loan to buy a vehicle fell 14 per cent.

"It’s surprising just how many people are borrowing for different needs," said Paula Ickinger, Abbey’s head of personal loans marketing.

"Only two or three years ago, the number of people borrowing for cosmetic surgery would have been very few and far between, but now it’s become a more regular occurrence.

"January is traditionally a time for people to sort out their finances and consolidate debt, which is still the number one reason why people apply for an unsecured personal loan. Consolidating various credit card balances and other loans under one roof is usually the best, most cost efficient way to reduce monthly outgoings."

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