The economy may be precarious and unemployment is rising, but 21 million people plan to take out a loan this year after the lockdown ends
The economy may be on the brink of a double-dip recession, unemployment is rising and tax hikes could be imminent, but 21 million people are planning to take out a loan this year after the lockdown ends.
A survey by AA Financial Services indicates that 40 percent of adults plan to borrow – with a new car, family vacations (if travel restrictions allow), and home renovations top their shopping lists.
Buying a pet – a feature of foreclosure in the UK – is also a popular choice with one in 12 aspiring borrowers looking to acquire a four-legged friend. On a darker note, three percent of those considering taking out a loan say they will use the money to fund a divorce – a sign the foreclosure has been too big for some couples.
Splash: Survey by AA Financial Services Says 40% of Adults Consider Borrowing
James Fairclough, director of AA Financial Services, says the survey results confirm optimism among many households that the final chapter of the pandemic has entered.
He says: “The fact that so many adults have the confidence to start planning for happier times in the months to come – even though the lockdown may go on for months.”
He adds: “It certainly appears that the lockdown has caused many people to re-evaluate their financial affairs.”
Data released earlier this month by the Office for National Statistics indicates that the economic impact of the pandemic has forced more households to borrow money – 18% of adults compared to 11% at the end of June of l ‘last year.
But AA’s survey suggests the new wave of potential borrowers are those who survived foreclosure in rough financial health and are considering some stage to spend, spend, spend.