Four per cent of the North East take out a loan to pay for their wedding

Weddings are expensive, so it comes as no surprise to see that you often have to borrow money order to enjoy the best day of your life.

In fact, recent research from the FairMoney National Borrowing Index, reveals that forking out for a life-changing event is just one of the top five things the North East borrowed money for in 2018.

With 31% of families funding Christmas on credit, FairMoney investigated a borrowing culture that is spiralling out of control.

Figures show the average loan size in the North East is £1052.80; 13% in the North East pay their rent or mortgage on credit; and that 18-34s are borrowing more money than any other generation.

The nationally representative data has found the top five things that people in the North East borrow for in 2018:
13% in the North East use loans for house repayments
18% in the North East use loans for emergency cash
4% in the North East use loans for life event costs (wedding, funeral)
17% in the North East use loans for consolidation
16% in the North East use loans for home repairs and improvement
34% in the North East use loans for cars/vehicles

Over recent years, there has been a significant rise in the amount that people are borrowing. The economic climate is now incredibly pressured with Brexit looming and a haze of uncertainty surrounding the outcome and how this may squeeze people further. Borrowing is now embedded within millennial culture, with 18-34s loaning more money than any other generation and the average loan size in the North East standing at £1052.80 whilst the average yearly income is £19226.20.

"Consumers deserve to have access to fairer finance to relieve the pressure of the financial squeeze in the run up to the most expensive time of the year," says Dr. Roger Gewolb, Executive Chairman and Founder of FairMoney. "As shown in our National Borrowing Index, funds are needed for an array of life events, some of which you cannot financially plan ahead for. In these instances, FairMoney provides a transparent and linear service that recognises that although Brits are borrowing more and more they are entitled to fair finance at fair rates. The focus should not necessarily be on what we're borrowing for, but more importantly who we're borrowing from."