Study Finds That Loan Consolidation Is Main Reason for Borrowing

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A new study from loans.org found that consumers frequently borrowed personal loans for debt consolidation purposes. Loans.org reviewed the applicants’ age, credit quality, employment status among other items.

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One of the top reasons consumers request a personal loan is for debt consolidation, according to a study from loans.org.

LINK: http://loans.org/personal/research/demographics-of-applicants#amount

Loans.org reviewed applications from over 1,900 personal loan applicants to analyze the demographics of each borrower. In the recent study, they reviewed the applicants’ age, loan purpose, loan amount, credit quality, employment status and yearly income.

One in four personal loan applicants chose debt consolidation as the main reason for requesting a new loan. Other top reasons were for household expenses, auto costs and healthcare bills.

The report also revealed the average, median and mode loan amounts requested. The most commonly requested amount was $2,000, yet the average was more than double that amount, at $4,423.

Josh Caldwell, a professional real estate investor, was surprised that borrowers requested such low amounts. He said the small figures show that borrowers use the funds to “stop-gap their finances.”

“They are borrowing for consumption rather than revenue producing events,” he said.

An infographic detailing the study’s results can be found at http://loans.org/personal/infographics/who-borrows-and-why.

Additional research, articles and news about the personal loan industry are available at http://loans.org/personal.

About loans.org:
loans.org is a leading lending authority website that covers financial news, produces informative articles, and answers frequently asked questions. In addition to providing lending-related information, loans.org also hosts a variety of free online application forms for prospective borrowers to use when applying for loans.

For more information, please contact:
Rebekah Coleman
Rebekah(at)loans(dot)org
(909) 784-2465
Source:loans.org

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Rebekah Coleman
Loans.org
+1 (909) 784-2465
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