Taking out a 'consolidation' loan is commonplace - but others use the credit for beach huts and even mobile discos.
"Consolidation" style loans remain popular among debtors, latest data from one of Britain's biggest lenders has revealed.
Halifax reviewed its own personal loan data, finding that 54 percent of applicants took out credit in order to consolidate their debts over the past 12 months. Meanwhile, 23 percent used the loans to buy a car, while 15 percent renovated their homes with the money.
Consolidation loans often provide a way of lowering monthly payments for people who owe large sums of money. For example, personal loans are often paid back at a lower rate of interest than credit card debt - meaning that it makes financial sense to pay off money owed on the card through the loan.
Halifax also said that many "less conventional" destinations for the loan money were accepted over the past year - including false teeth, a beach hut and even a mobile disco!
Russell Galley, director of loans at Halifax, commented: "Our research shows that loans are taken out for a wide variety of reasons. Similar to the last annual review there is a continued trend in the number of people who are looking to invest in themselves and their future."
Personal loan provision from high street banks has come under pressure over the past two years, with the global credit crunch making it harder for the firms to secure funds on the wholesale markets that would then be used to pay for customer loans. This, coupled with nervousness over default levels, has led to most products being offered at higher rates and entailing tougher criteria than before.
