{"id":509,"date":"2025-05-11T08:00:00","date_gmt":"2025-05-11T08:00:00","guid":{"rendered":"https:\/\/originalholdum.com\/?p=509"},"modified":"2025-05-16T15:43:51","modified_gmt":"2025-05-16T15:43:51","slug":"map-reveals-the-uk-loan-hotspots-where-people-borrow-the-most-money","status":"publish","type":"post","link":"https:\/\/originalholdum.com\/index.php\/2025\/05\/11\/map-reveals-the-uk-loan-hotspots-where-people-borrow-the-most-money\/","title":{"rendered":"Map reveals the UK loan hotspots where people borrow the most money"},"content":{"rendered":"
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Debt consolidation is the most common reason for borrowing (Picture: Getty Images)<\/figcaption><\/figure>\n

Searches\u00a0for the term \u2018I need a\u00a0loan\u2019 surged by 35% in\u00a0the past three months, reflecting a growing reliance on borrowing<\/a> to navigate financial challenges.<\/p>\n

This is evidenced by the latest Pepper Money lending study<\/a>, which found that more than half of Brits saw a drop in disposable income last year; and higher bills<\/a> are hitting the nation\u2019s pockets hardest.<\/p>\n

As a result, a third of UK households have borrowed to pay for food or utilities, while 16% say their debt has increased<\/a> \u2018a lot\u2019 over the previous 12 months.<\/p>\n

According to the lender\u2019s data, the average\u00a0loan\u00a0taken out in 2024 sat at \u00a341,088, with the most common reason given being debt consolidation (accounting for around half of the total) followed by home improvement (making up 9.7%).<\/p>\n

Loans for property purchases or investment and those to fund travel<\/a> or weddings are also becoming more common, as is medical-related borrowing to pay for private care.<\/p>\n

However, it seems that residents in some cities were far more inclined to borrow than others.<\/p>\n

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Brummies were responsible for almost one in eight loans across the UK last year, with the average amount coming to \u00a340,393. <\/p>\n

Here, weddings were the most common reason for borrowing \u2013 a stark contrast to Sheffield (which accounted for the second-highest proportion with 10.5%) where it was medical bills.<\/p>\n

Next up, Cardiff came in third with 9.5% of the country\u2019s loans, and the top five was rounded off by Newcastle and Nottingham, which racked up 8.5% and 8.2% respectively.<\/p>\n

Perhaps surprisingly, London didn\u2019t make the top 10. But although the capital made up just 3.9% of 2024 loans, the ones that were taken out were the largest among the cities studied, averaging at a whopping \u00a361,681. <\/p>\n

Commenting on the findings, Ryan McGrath, sales director at\u00a0Pepper Money<\/a>, says:\u00a0\u2018We\u2019re\u00a0seeing more households in cities like Birmingham, Sheffield, and Cardiff using\u00a0loans\u00a0not just to\u00a0consolidate\u00a0debt, but also to invest in their homes and even fund major life events. <\/p>\n

\u2018Rising costs mean people are looking for smarter ways to borrow, and secured\u00a0loans\u00a0are becoming a more popular option for homeowners who want to access larger sums at lower rates. <\/p>\n

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