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Borrowing in Northern Ireland is 21% higher than the UK average, but many residents struggle to spot reputable lenders, according to new research.<\/p>\n
A recent survey by Loqbox, the UK\u2019s leading credit-building business, in partnership with Censuswide, has unveiled critical insights into how people in Northern Ireland are managing personal borrowing\u2014and where many are getting it wrong.<\/p>\n
The study found that 52% of people in Northern Ireland borrowed money in the past year, a figure that is 21% above the national UK average. Yet despite this high borrowing rate, financial confidence appears lacking, with one in three (33%) respondents admitting they don\u2019t feel confident identifying trustworthy lenders\u2014the highest level of uncertainty recorded across all UK regions.<\/p>\n
What are people borrowing and why?<\/strong><\/p>\n Among the forms of credit used, personal loans (57%) were most popular, closely followed by credit cards (50%). The majority of borrowers took out loans of less than \u00a35,000 (44%), though 7% borrowed sums greater than \u00a35,000.<\/p>\n When choosing a lender, Northern Ireland respondents cited benefits offered (36%) and transparency in fees and charges (21%) as the most influential factors. However, this doesn\u2019t always translate into responsible borrowing behaviour.<\/p>\n Only 37% of people consistently consider their ability to make repayments long term, and just a quarter (25%) always read the small print in loan agreements\u2014both factors which can lead to serious financial consequences.<\/p>\n BNPL used for essentials<\/strong><\/p>\n Alarmingly, the survey found that 14% of respondents used Buy Now, Pay Later (BNPL) services to pay for essentials like food or fuel\u2014a figure 3% higher than the UK average. This rising dependency on BNPL suggests a worrying trend in which short-term borrowing is being used to plug essential spending gaps.<\/p>\n Tom Eyre, CEO and Co-Founder of Loqbox<\/strong>, expressed concern over the findings:<\/p>\n \u201cIt\u2019s concerning to see that while borrowing in Northern Ireland is significantly above the UK average, so many people lack confidence in identifying reputable lenders. This uncertainty can lead to risky borrowing decisions.<\/p>\n \u201cAt Loqbox, we believe that borrowing should work for you, not against you. Everyone deserves to feel in control of their finances and make informed decisions that truly work for them.\u201d<\/p>\n Financial education: a missing piece<\/strong><\/p>\n The research highlights a clear need for greater financial education to bridge the gap between borrowing habits and smart financial management.<\/p>\n \u201cThere\u2019s an urgent need for clearer communication and better financial education, empowering consumers to make informed, confident choices about their borrowing,\u201d Tom<\/strong> added.<\/p>\n He warned of the dangers facing those who struggle to assess lenders properly:<\/p>\n \u201cWith one in three people in Northern Ireland struggling to tell the difference between reputable and unreliable lenders, there\u2019s a real risk that people could take on credit that doesn\u2019t work for them. That\u2019s why financial education is so important \u2013 it gives people the power to borrow safely and on the right terms for their circumstances.\u201d<\/p>\n A practical guide to smarter borrowing<\/strong><\/p>\n To help tackle the issue, Loqbox has released a new free resource: \u2018How to borrow money: What people get wrong and how to get it right\u2019. The guide offers accessible explanations of borrowing terminology like APR, repayment terms, and how to verify a lender\u2019s legitimacy via the FCA\u2019s Financial Services Register.<\/p>\n It also includes actionable tips such as:<\/p>\n Setting up repayment reminders<\/p>\n<\/li>\n Keeping a low credit utilisation rate<\/p>\n<\/li>\n Using budgeting apps to track expenses<\/p>\n<\/li>\n Evaluating the risks of BNPL offers<\/p>\n<\/li>\n<\/ul>\n \u201cWhen people have the right financial knowledge, they\u2019re better equipped to navigate credit cards and loans with confidence \u2014 sidestepping traps like sky-high interest rates and unmanageable repayments,\u201d said Tom Eyre.<\/strong><\/p>\n \u201cBut financial literacy isn\u2019t just about avoiding risks; it\u2019s a powerful tool for unlocking opportunities. From building a strong credit history to securing better borrowing terms, understanding how to use credit wisely can help people turn their financial aspirations into reality.\u201d<\/p>\n Want to learn more?<\/strong><\/p>\n Loqbox\u2019s full guide and research findings are available to download here<\/strong><\/a>. <\/p>\n\n