The latest edition of polarloans.co.uk’s Money Monitor reveals that 42 per cent of those who took out a loan with the site in May did so in order to consolidate their debt.

Home improvements were also a popular reason for borrowing, with one in five people choosing a loan to get their home looking its best.

Business loans were not far behind, attracting 17 per cent of borrowers, whilst ten per cent went for either wedding loans, holiday loans, remortgages or boat loans, and nine per cent took out a loan to buy a car.

The average amount taken out for debt consolidation was £23,886, whilst business loans topped the amount list at £36,903 on average.

Home improvement loans averaged £17,538, and car loans £11,095, whilst the other loans had an average value of £14,893.

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