The number one reason for obtaining borrowing is in the form of debt consolidation loans, it has been claimed.

A spokesperson for Sainsbury's Bank asserts that debt consolidation loans are the main form of lending currently being taken out by consumers.

Head of loans Steven Baillie adds that loans can "absolutely" and "definitely" be a good way to tackle existing debts.

"Anybody that's doing debt consolidation will probably be doing an element of a purchase at the same time," Mr Baillie observes.

This could involve buying a new car or updating bathroom fittings, he proposes.

But while such purchases serve as a trigger, the spokesperson argues that debt consolidation remains the overriding purpose when arranging a personal loan.

"I think the big three are sorting out debts, then you've got your car and then you've got your home improvements," he states.

The financial services provider recently predicted the repair bill following damage caused by children in October's half-term holiday would top £100 million nationwide.ADNFCR-1287-ID-18340030-ADNFCR

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