Member Article

Nearly 40% of consumers to take out a loan to fund summer spending

The research also reveals that an additional 11% of British holidaymakers will be using credit cards to supplement their summer holiday spending. Whilst 60% of these borrowers are making these repayments within six months, one in 12 (8%) will take over six months to pay organisations back.

Other findings include:

• 1 in 3 UK consumers (32%) intend to spend more than they did last summer
• 42% of Brits’ budgets, including the value of a loan, will go on social events, such as weddings, festivals and parties
• Fashion is also a priority, with 36% of summer budgets going on summer clothing
• Only 1 in 3 UK consumers will use household disposable income to fund summer activities, far below the European average of 54%

The research demonstrates that, on average, UK consumers will spend less of their summer finances on travelling than on social activities (34%), either at home or abroad.

Tony Gundersen, UK Country Manager for Ferratum comments:“Our research revealed almost half of Brits are using a loan or credit card to fund the summer holiday period. Surprisingly, more of consumers’ summer spend is going on social activities than an actual holiday, showing a shift in priority for UK holidaymakers.
With one in twelve taking more than six months to repay the full credit amount, consumers must educate themselves on the terms of their credit agreements to ensure they have the means to pay back the amount owed. Equally, lenders should make the repayment process clear up front, as well as any additional fees which may be incurred.”

This was posted in Bdaily's Members' News section by Ferratum .