The majority of borrowers cite home improvements as the main reason for borrowing money, according to survey published today.
The survey conducted by One Direct, the financial services subsidiary of An Post reveals that 36 per cent of customers are borrowing for home improvements and renovations while 20 per cent are using funds for debt consolidation.
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 over 30 per cent 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 per cent of annual lending.
The survey of over 8,000 customers reveals that almost half, 43 per cent of its customers, elect to borrow over the maximum five year term, 20 per cent of borrowers opt for a three year term with 15 per cent electing to make repayments over two years.
However, despite the term agreed many borrowers, 15 per cent, choose to pay their debt off early, with 36 per cent of early closers, paying off the debt in full within six months of borrowing and a further 44 per cent paying off the debt in the next six months.