Why do we get into debt?

Ever wondered how and why we get into debt? You would be amazed at the lifestyle choices made by millions of Brits and the money they are prepared to splash out to achieve their dreams.

The top ten most popular reasons for taking out a personal loan and the average amounts, according to Marks and Spencer Financial Services are:

Home improvement £3605
Car or car repairs £3369
Holiday £2252
Wedding £4190
Caravan £5466
Electrical goods £2352
Motorbike £2844
Medical expenses £5063
School fees £3838
Garden £2885

But not everyone has such straightforward needs. The most unusual loan requests from the Lloyds TSB make interesting reading. One borrower wanted to buy a Bengal tiger. Others needed the cash for everything from a deposit to be on the waiting list for cryogenic freezing; building a robot to appear on the TV programme 'Robot Wars' or bidding in auctions for a Spice Girls outfit.

'While the British might be renowned for being reserved, our records prove we still have our fair share of eccentrics,' says Tony Gibbons of Lloyds TSB. 'These requests demonstrate that people can use loans as a way to help express themselves as individuals. The top three reasons for taking out a loan are still holidays, cars and home improvements but as our records show, sometimes people apply for money for something just that little bit out of the ordinary.'

This time, it's personal

When Sainsbury's Bank surveyed borrowers, it found that a staggering £17 million will be taken out through personal loans to pay for university fees and £16 million for school fees. An estimated £13.9 million will be taken out to pay for medical bills and £14.6 million will be used to pay for dental work. Some of the most unusual reasons for loans the bank came across included buying a beach hut, flying lessons and - less glamorously - a septic tank.

Pressure to look as good as celebrities is also driving a new credit card trend labelled 'Celebrity Spending' as women seek the perfect figures, immaculate grooming and expensive wardrobes of film and TV actresses and fashion models. In the last twelve months, UK women say they've spent £830 million on 'must-have' designer bags and shoes, £873 million on hairstyling and extensions like Victoria Beckham's and £262 million on fake tanning treatments. Glamour girls are most likely to pull out their credit card for facials, manicures and beauty products, followed by designer outfits. Two thirds will then guiltily hide their purchases from their partners and be less than honest with their friends and family about how much they spend.

But the quest for beauty is more than skin deep. Of those surveyed recently by Abbey, nearly one in ten would consider going under the surgeon's knife or have already done so; and of those, women outnumber men by nearly three to one. The small matter of money is not a problem. More than 25% would borrow an average of £4,156 to fund a better body. A quarter said they would happily borrow up to £20,000. It is estimated around 75,000 cosmetic surgery procedures are carried out each year in the UK.

However, men are prepared to borrow more than women for cosmetic surgery with most looking for loans of up to £4,190 compared to the £3,900 sought by their female counterparts. And in an effort to turn back the clock, UK men spend more than £2 billion on plastic surgery, career breaks and even counselling to get them through an early mid-life crisis, say Virgin Money. And guess where the money coming from. About a quarter of men in their forties say they've taken out a personal loan to cover the cost of a mid-life crisis while 45% have turned to their credit cards and 30% have blown their savings.

Staying in, going out

Once you are looking your best, you are ready to paint the town red. But if you have ever visited the cashpoint at the beginning of a Friday night and woken up with an empty wallet on Saturday morning then you are part of our national £34 billion bill for a Friday night out. A study by National Savings and Investments shows that around 1.4 million people across the country go out four Fridays a month, spending more than £50 each time to run up thebill. 10% will put the cost on the their credit card and 3% borrow from friends.

Staying in is no cheaper. Our obsession with DIY costs each household around £5,000 a year, adding up to a whopping £75.57 billion. Some 14.28 million people plan to spend an average of more than £5,000 on home improvements over the next six months according to Sainsbury's Bank. Part of this craze is down to the the popularity of TV home makeover programmes and uncertain mortgage interest rates have led the decorating craze.

But before you put on the Llewelyn-Bowen filled shirt and crack open the paint, make sure you have a plan. Patrick Sawdon, chief valuer at Halifax, offers this advice: 'It is important to remember the resaleability factor when considering any work to be undertaken on your home. The key is to ensure that any alterations are in sympathy with the surroundings. Don't go overboard.'

Whatever your financial fetish, make sure you shop around before taking out your personal loan. 'Apathy costs money,' says Mike Senior of The MarketPlace at Bradford and Bingley. ' With such an abundance of loans available it is definitely not a case of one size fits all. So consumers need to be 'on the ball' to ensure that they get the best deal for them.'