It is relatively unsurprising to see loan numbers rise like this, as coronavirus has wreaked havoc on the economy and reduced income levels for millions of people.
When looking into the data, it was revealed in 2020 the average value of a loan for home improvement increased by £1,078 and car loans increased by £638 – six times more than the increase (£94) in 2019.
Sasha Evans, a Money Expert at MoneySuperMarket, commented on what this data means for consumers and what actions they should be taking: “The nearly £800 increase in the average loan amount taken out shows a shift in many people’s finances in 2020.
“Our data suggests that people who haven’t been financially impacted by pandemic are looking to borrow a bit more, maybe for a new kitchen or to buy a new car.
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