More than eight in 10 UK consumers are confident they can keep up with repayments on their debts, a report has shown.

The latest Lloyds Bank Lending report, for the final quarter of 2015, found that 85% of people are confident they can keep up with their repayments.

Four in five, or 80% said they always keep up to date with their repayments, with 82% using household income to pay off borrowing.

The report suggests that consumers’ confidence towards repaying their debts is still positive.

According to the Lloyds report, 24% of people took out a personal loan to buy a car or bike

According to the Lloyds report, which looked at ‘unsecured debts’ that had not been secured on a house or car, the most popular reason for taking out a personal loan was to consolidate debts (30% of respondents).

This was followed by buying a car or bike (24%), and needing the money for home improvements (19%).

The report found that while credits cards are the most common type of unsecured debt, followed by overdrafts, the number of people who say they would consider a personal loan rose from 14% in the third quarter of 2015 to 22% in Q4, becoming the second most likely method to be considered by people looking to consolidate their debts.

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Sam Clark, head of loans at Lloyds Bank, said: “Borrowers’ behaviour continues to adapt to a prolonged and unprecedented period of ultra-low interest rates. 

“While the level of consumer credit has risen as the economy improves, our report suggests that borrowers remain comfortable with managing their unsecured borrowings.”

A growing number of people are applying for loans using mobiles, tablets and computers rather than from their branch

According to the report, nearly two in five people (16%) of those who had taken out a personal loan to fund a special occasion, did so for an anniversary.

Men (24%) are twice as likely to have done so than women (10%), continuing a trend seen throughout 2015. 

And more people used a loan to pay for someone else’s birthday (43%) than the number who did so to pay for their own celebrations (13%).

The report also revealed that more people are using digital methods like their mobile, tablet or computer to apply for loans, rather than going into their branch.

At the start of 2015, 46% of respondents had used a digital method to apply for their last loan compared to 33% who did it in a branch. 

By the end of the year this had moved to 56% using digital and 28% using their branch.