Finance news from Loans Park

London (loans-park) January 9, 2007: It has been suggested that personal loans may be used to cover tax bills that crossed the expected level. In some cases, the tax bills can get higher than they were expected to be.

This assumption is made by Sainsbury’s bank, considering the finding of the HM Revenue & Customs. Facts from HM Revenue & Customs reveal that 900,000 people received a £100 fine as they missed last year's tax self-assessment deadline.

It is because of this that the bank expresses its prediction that consumers will turn to personal loans both secured and unsecured - to cover the additional cost.

The bank estimates that approximately £50 million will be dispensed as personal loans to pay for tax bills in the year 2007. The bank also reported that the average loan amount might be around £10,885.

Steven Baillie, loans manager at Sainsbury's Bank, said that some people could find themselves facing a tax bill that was considerably higher than they had been expecting; and to help cover this, they would take out a personal loan.