Secret loans: Brits' £7.7bn hidden debt
UK's £7.7bn loan secret
Wednesday, 30 Jan 2008 11:26
Over 1.3 million Brits have taken out secret loans worth £7.7 billion – without the knowledge of their family or partners.
The average size of a secret loan is £5,720, research by Abbey reveals.
However, for five per cent of recipients the clandestine borrowing is to cover debts of between £20,000 and £50,000.
For 56 per cent the covert loans were to cover debts, while 15 per cent went towards home improvements and five per cent paid for holidays.
Some two per cent of secret borrowers – or 27,000 people – used the cash to finance cosmetic surgery.
Paul Morrish, director of Abbey Loans, said: "Borrowing in secret – especially large amounts – is not advisable and we would encourage people to be open and honest about their finances.
"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 – covert or overt – to make sure they compare loans across the market to find an appropriate deal as "there are different types of loans that suit different circumstances".