Most borrow for home improvements - study

An Post financial services subsidiary One Direct has revealed the majority of its borrowers cite house renovations and improvements as the number one reason for borrowing money.

A survey of more than 8,000 customers showed that 36% of customers borrowed for home improvements and renovations, 20% for debt consolidation funds, 16% to buy a new or second hand car and 13% to fund holidays.

Only 1% of borrowers said they took the loan to finance a wedding.

Some 36% paid off the debt in full within six months of borrowing and a further 44% paid off the debt in the next six months.

The survey also reveals that July, August and September are the peak months for customer borrowing, driven largely by summer holiday and back-to-school needs, with more than 30% of annual lending taking place during these months.

Pre-Christmas spending pressures account for a further surge in borrowing patterns, with November accounting for approximately 10% of annual lending.