A Year in Loans

By: Philip Smith

There are many times over the year when we feel stretched financially - whether it's covering the cost of Christmas, or working out how to pay for that summer holiday.

A loan can help ease the burden of having to find a lump sum quickly. There are thousands of cheap loans to choose from, to suit a whole range of different requirements. Here, you can compare car loans, business loans, personal loans, unsecured and secured deals as well as consolidation and loans for those with a bad credit history.

We've taken a look at some of the reasons people borrow at different times of the year, and whether or not there are any clear patterns to indicate when our purse strings are at their most stretched.

Sophie Neary, product director at BeatThatQuote.com, says: "There are clear seasonal borrowing trends; debt consolidation after Christmas and home improvements in spring, but it's the one-offs that are the most interesting as they really provide an insight into our relationship with credit - often as a way to change or enhance our lives with cosmetic surgery, a divorce or flying lessons!"

There are also differences between the sexes - women are more likely to take out a loan to help them fulfil their potential than men. Sophie says: "Extreme examples being a boob job or a house deposit, whereas men borrow for more practical reasons like funding a divorce or buying a cab."

LOAN CALENDAR

January, February, March


The three months after Christmas can be difficult - most of us have splashed out too much over the festive period and now we're left counting the cost. Hardly surprising then, that the most common reason for taking out a loan during these three months is to consolidate Christmas debts.

Sadly, it's often a time when couples split up, so the other major reason people take out loans at this time is to cover the cost of divorce.

Some people decide that this is the time of year for a lifestyle change, and so take out a loan for laser surgery, boob jobs or tummy tucks. Other reasons given for taking out a loan now include buying a violin, joining a gold club, buying a caravan or converting the loft.

Let's not forget that many people find themselves with a nasty tax bill in January, so a loan can be invaluable if you don't have a lump sum to hand to clear this debt.

April, May, June

Once those New Year debts are dealt with and spring has finally arrived, many people choose to take out a car loan to pay for that new set of wheels. Make sure you compare plenty of different deals so that you end up with the right one for you.

Other reasons people gave as to why they take out loans at this time of year are to pay off poker losses, or for weight loss surgery.

July, August, September

Maybe it's because these are the summer months and we feel a bit self-conscious on the beach, but during this period more than any other, people take out loans to cover the cost of cosmetic surgery.

It's also a popular time to make lifestyle changes such as a house move, when a loan can be invaluable for that house deposit, or to update your existing property by building a conservatory, or putting in double glazing.

October, November, December

If you're planning a big family Christmas, then a loan can be the easiest way to pay for everything. Often this can be the time people splash out on household items such as a new sofa or bed to ensure that the relatives are entertained in style.

Other reasons given as a reason to take out loans are to pay for catalogue shopping bills or to buy some vintage wines.

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