New year loans 'becoming trendy'

It is now becoming popular to take out personal loans, it has been revealed.

January is the month for loans, according to new research, which claims that people in the UK are more likely to take out an unsecured personal loan during this month.

This comes from Halifax, which also states that the amount of applications for debt consolidation loans increased in January.

Men are more likely to apply for this type of loan than women, according to the bank's research; while younger people aged between 20 and 29 are more likely to take out a loan in order to consolidate their debt.

Neil Chandler, head of Halifax unsecured personal loans, said: "For many people, the start of the year is a time to get personal finances in order - transferring debt from more expensive products such as store cards or other loans.

"Our research shows that this is certainly the case, with the number of loans taken out for debt consolidation increasing."

Looking for the best loans may be quicker and easier online, Mr Chandler added, as an online application can take less than ten minutes and at any time of day, meaning that getting loans online may be the most convenient way of boosting finances.

Halifax recently advised UK consumers to sort out their finances in the new year by making a resolution to avoid the sales and save instead of spend.