Economy may be precarious, tax rises could be near and unemployment is increasing, but 21m people are considering taking out a loan this year once lockdown ends
The economy may be hovering on the edge of a double-dip recession, unemployment is rising and tax rises could be just around the corner, but 21million people are considering taking out a loan this year once lockdown ends.
A survey by AA Financial Services indicates that 40 per cent of adults are planning to borrow – with a new car, a family holiday (travel restrictions permitting) and home improvements top of their purchase lists.
Buying a pet – a feature of lockdown UK – is also a popular choice with one in 12 wannabe borrowers looking to acquire a four-legged friend. On a darker note, three per cent of those thinking about taking out a loan say they will be using the money to fund a divorce – a sign that lockdown has been too much for some couples.
Splashing out: A survey by AA Financial Services indicates that 40 per cent of adults are planning to borrow
James Fairclough, director of AA Financial Services, says the survey results confirm an optimism among many households that the last chapter of the pandemic has been entered.
He says: ‘The fact that so many adults have the confidence to start making plans points to happier times in the months ahead – even though lockdown may continue for months to come.’
He adds: ‘It certainly seems that lockdown has prompted many people to reassess 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 per cent of adults compared to 11 per cent at the end of June last year.
But AA’s survey suggests that the new wave of prospective borrowers are those that have survived the lockdown in rude financial health and are looking at some stage to spend, spend, spend.