More than eight out of ten Brits with ongoing debts remain positive that they will face little problem in servicing their borrowings in the coming months.
This is the view of the latest Lloyds Bank Lending report, which showed that during the fourth quarter of 2015, a total of 85 per cent of existing borrowers were confident they will be able to keep up their repayments over the mid to long term.
The result is a slight improvement from the start of last year, when 83 per cent of respondents made this claim.
Furthermore, 80 per cent of people said they are fully up-to-date with all of their repayments at present.
In terms of how people are paying off their debts, more than one in five said they are able to do so from their general household income each month.
Meanwhile, the report also examined the most popular reasons for individuals taking out personal loans in the current financial climate, with 30 per cent stating they have done so in order to make their lives easier by consolidating all of their debts into a single monthly payment.
This was followed by purchasing a car or bike at 24 per cent and making home improvements (19 per cent).
In addition, the number of people that are taking out personal loans to pay for special occasions has remained unchanged during recent quarters, at around 16 per cent of the sector.
At the same time, men were shown to be the more likely to do this than women, with around double the likelihood that men are taking out loans to fund one off celebrations.
Responding to the latest debt report, head of loans at Lloyds Bank Sam Clark said that borrower behaviour up and down the country continues to reflect the unprecedented period of `ultra-low interest rates` that has been a fixture of UK borrowing for several years now.
He added that improvements within the economy, since the worst of the economic downturn has passed, continues to ensure that the vast majority of households are comfortable managing their unsecured borrowings.
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