The average personal loan taken by a Briton has increased to £4,000 indicating a growth of more than 10 per cent than last year. Decrease in unemployment, mortgage arrears and county court judgments have helped people take loans and handle repayments efficiently.

Britons have accepted personal loans in a big way. The growth of 45 per cent this year compared to 2000 figures indicates a fairly good journey for personal loans in the United Kingdom. The average personal debt including both secured and unsecured loanshas reached £4,000 increasing by 10 per cent compared to last year. The trend has caught so much that UK consumers have beaten their counterparts in US and Europe in accumulating personal debts.

Analysts find the reduction in bad debt indicators the reason for growth of personal loans. Decrease in unemployment, low county court judgments and less repossession have created a positive influence in the minds of consumers to go for personal debts. Consumers are coping well with the repayments and this has also fuelled growth of personal loans. With interest rates and unemployment at historic low, experts don’t fear any negative fallout of this trend.