A financial services industry expert has made it clear that UK consumers generally choose personal loans for three reasons, one of which is car finance .

The head of loans at Sainsbury’s Bank, Steven Bailie, also listed debt consolidation and home improvements alongside vehicle finance as the top three reasons to take out a personal loan .

Bailie reportedly commented: Debt consolidation is number one at the moment. But that's not a bad thing, if you look at it. Customers are sorting themselves out. It comes back down to doing your homework, understanding that you're getting the best rate, understanding all the clauses, the small print et cetera, so there are no hidden charges.

Bailie reportedly concluded: It's back down to using a personal loan for the purpose it's devised, which might be settling off all your credit cards and you're saying: 'Right, let's get a grip of all my spending.’