A study claims that one in four people take out personal loans every year. A survey was conducted on 2,129 people who applied for personal loans, 17 pc of their applications were rejected. Spokes-persons says that the loan-taking has become very common in this era, that it was used to splash out on vacations, repay existing loans. There are number of reports and case studies on the reasons behind people take personal loans. Here are some of the strange and I will say ‘silly’ reasons behind.
Modern day people do not give a second thought on spending their money on costliest cosmetic surgeries, especially the mid-teens. No doubt that the facial surgeries change you to beautiful overnight and winsome; but going for debts is considered as the craziest reason.
The second reason which competes the list is buying domestic animals. Yes! It may seem new and weird, but it happens. Many young teens apply for loans worth 10,000 pounds to purchase camels and elephants. There are 4 million horses in the US owned just for fun and for recreational purposes. Owning a four-legged friend is not a sin, but you should keep the factors in mind accordingly. Dated back, I remember reading that a customer went to the bank to get the loan approved to purchase a pet parrot.
A large amount of money is being granted in the name of unsecured personal loans, when the person ashamed to admit his/her financial status. These loans are hidden out of embarrassments and to surprise family and friends. Twenties are the most likely to apply for this debt consolidation loan and the rank of men is greater than the women.
Buying stocks out of loans is a bad decision. Being in stock market is walking on a knife, it needs experience to rule it. And buying on credit is too risky and stupid.
Other reasons which follows the list are:
- To buy gifts for loved ones
- To go on holiday
- To purchase a car
- To pay off other debts
- Home renovations/DIY
- To make ends meet
- Fuel/Transport Costs
- To treat luxury items/treats
Reports says January month is the most likely for the maximum loans applied, believes it is the knock-out effect of Christmas celebrations. There may be plenty of other crazy reasons which are unknown, but more often, it is to enjoy a vacation or satisfy an obsession.