British borrowing and buying habits are changing
That’s what came out of a new and exclusive YouGov poll for Post Office. They asked over 2,000 Brits about their buying and borrowing habits. The research found that we’ve become a nation of borrowers who take out personal loans for the things we really need, not the things we want. When we think about borrowing money, we ask ourselves more questions. Like ‘are personal loans worth it?’ And ‘should I get a car loan?’. We’re still borrowing. Just looking harder before we leap.
Borrowing for the things we need is ok by Brits
Prefer to save for the things you want and get them later? You’re not alone. YouGov found that a huge 89% of us are not likely to take out a personal loan to pay for something we really want but isn’t essential. Borrowing money to pay for a new kitchen is regarded as ok. We use our kitchens every day to feed our families. The same goes for cars. When the car fails its MOT, we need to fix or replace it so we can do the school run or get to work. The thing we’re using the loan to pay for has to be critical. It all boils down to Britain being more responsible about borrowing.
Personal loans for luxuries are on the way out
In the noughties, we had a ‘want it, get it now with a loan’ attitude to borrowing money. But things have changed. Now we think of things like holidays and weddings as wants, not needs. Only 8% of us would borrow to pay for a wedding. There’s a big difference between the number of us who would get a loan for a wedding, and those who would borrow to pay for cars and home repairs.
Trust is a big deal for borrowers
There’s widespread support for the government to keep a closer eye on lenders. Brits want to borrow from a brand we know and trust. It turns out that ‘are personal loans worth it?’ and ‘should I take out a car loan?’ are really about deciding which brands we trust to lend us money on fair terms. We’re also likely to ask ourselves more questions before we go ahead. Like which bank is best for personal loan interest rates and flexible repayment terms? Does refinancing a personal loan hurt your credit? We’re becoming smarter about our borrowing.
Get all the answers you need before applying
Personal loans, interest rates and charges can be confusing. That’s why it’s important to borrow from a brand you can trust to talk you through the options. One that provides tools like calculators and checkers that help with budgeting and planning.
Post Office Personal Loans are provided by Bank of Ireland UK. You can borrow from £1,000-£25,000 over 1-7 years. Usually, you’d need to apply for a loan to find out whether or not you’d get it, which marks your credit file. Not anymore.
Use the Fast Checker to see if you’re likely to get the loan before you apply for it – without affecting your credit score.
Get an instant online decision in most cases.
You could see the funds in your account the next day.
When you can afford to, you can choose to make penalty-free overpayments. That can help you reduce the balance, save interest and shorten the term of the loan.