Car Loans Lead Brits to Debts Front Door
The desire to own a new car has been identified as one of the most common ways for British consumers to rack up unmanageable debts.
According to one of the countries leading credit reference agencies more than 25% of British males as well as 10% of British females will accumulate personal debt by way of acquiring loans for the purpose of buying a new car in 2008.
It has also been discovered that more than 30% of car loan applicants are motivated into making their decision on the premise that their personal image will be enhanced considerably through ownership of a new vehicle. A separate poll revealed that cars are ranked at the top of the list for image conscious Brits, closely followed by clothing and fashion accessories such as watches and jewellery.
A spokesperson for the agency remarked that it is was quite surprising to see so many people accumulating high end debts through car loans, when as a whole, Britain has become more aware of frivolous spend and the detriments of debt.
In addition, the average car loan shopper will request £9’000 from their lender, repaying an average of £160 per month. Consumers are advised to think long and hard before jumping behind the wheel of a new car (especially if it is purchased through credit), and to always consider the potential effects of the purchase on their budget first and before their image.
