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Less need for personal loans with cash windfalls

20 October 2004

More than half of Britons have the desire to save, which would mean a lower demand for personal loans, according to new findings from Alliance & Leicester's Wealth Tracker Index.

Given a windfall of £250, on top of their monthly income, six in ten Britons (60 per cent) say they would save it - while only 4 per cent would fritter it away.

One in five people (21 per cent) say they would save the extra £250 for the long-term, whilst almost four in ten (39 per cent) say they would 'save to spend' on short-term wants.

Just 2 per cent say they would save for their children's education or their own retirement, while more than one in ten (15 per cent) would save to pay for Christmas presents and one in six (17 per cent) would save the bonus for their next holiday.

Clearing existing debts and paying household bills was the choice of one in six (15 per cent) people.

Nathan Barber-Kebby, marketing manager for savings at Alliance & Leicester commented: "The average Briton rarely receives a lump sum cash bonus, so if they did, it's encouraging to see that people wouldn't simply fritter it away, but use the money constructively.

"It's also good to see that people are now starting to acknowledge the benefits of saving money - whether it to be for the short term or long term.

"We would urge savers to shop around to ensure their savings are working as hard as possible for them - there are some great deals around and you'd be surprised how quickly even the smallest savings start to add up."