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Public still cautious on loans

The public are still cautious when it comes to managing their money, according to research by Yorkshire Bank.

The bank interviewed 1,000 people and found almost two-thirds, categorised at decisives, plan their finances, especially loans, very carefully. Researcher Dr David Lewis, who analysed the survey&#39s results, categorised the remining people questioned as impressives, nesters and speculators.

Impressives were found to live for the moment and made up 14 per cent of those interviewed.

Their blase approach to borrowing and spending contrasted with the 8 per cent of nesters who took out loans for home improvements rather than use their savings.

The 8 per cent of speculators let their entrepreneurial spirit lead them.

There were also geographical splits, with people from Yorkshire, the East Midlands and Wales most likely to save for something than those from the South-east and London who were the biggest spenders.

But one in five people said they would still take out a loan for something they otherwise could not afford, such as travel.

Yorkshire Bank personal loans marketing manager Andrew Hindle says: “I was surprised by the number of people who were cautious about taking out loans and their ideas on what would not qualify for a loan.

“Although we are still looking at mass marketing rather than specifically tailoring to single segments, this information does help us in the sales process as we can now let people know they can have loans for almost any purpose as long as it is legal.”

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