Brits are set to borrow £18.4bn this year for home improvements, according to research from Go.Compare.
The study found that around 7.7 million adults planned to take out a loan in 2023.
Personal loan borrowing could reach up to £63.7bn by 2025, based on average loan amounts since last year.
Many loans, over £21.2bn worth, are expected to be for car purchases, with 1.9 million people planning to borrow for vehicles.
For weddings, holidays, and other uses, loans are projected to amount to £10.7bn, with another 2.1 million adults planning to borrow.
Between September 2022 and December 2024, debt consolidation was the most common reason people borrowed money, accounting for 27% of loans.
The average loan amount for debt consolidation was around £8,750 per person.
Personal loans for home improvements averaged around £8,600, making them the third most expensive after car loans and debt consolidation.
Brits borrowed an average of around £7,210 for weddings, while loans for holidays averaged £3,443.
Matt Sanders, loans expert at Go.Compare, said: “Taking out a loan is a serious financial commitment.
“You must be confident that you’ll be able to meet the repayments of your loan without issues in the future, taking into account the consequences if you fall behind.
“When it comes to some of the main loan uses, like car payments, holidays or weddings, it’s worth considering alternative ways of funding them first to avoid needless debt.”
