Most PPI claims spent on booking holidays

The average claim payout for payment protection insurance (PPI) is £2,810 and most people use the money to pay for a holiday, according to new research.

While 24% treated themselves to a trip, a new car was the next most common purchase with 22% saying that's what they splashed out on after receiving a PPI windfall, a survey by money-saving website VoucherCodesPro has revealed.

Further down the list were home appliances such as fridge freezers, followed by paying bills and then household furnishings.

The survey also found that it only took two and a half weeks on average to spend the money from a settled PPI claim and only 12% of people put any in savings.

Meanwhile, only a fifth of respondents had successfully received a payout. A further 13% felt they might have been eligible to make a claim, but hadn't done so yet.

George Charles, spokesperson for, said the following: "It was really interesting to see what these PPI claims are being used for, with the cash mostly going towards a few luxuries. However, some people are using the cash to pay bills and buy groceries, but we're in full support of those who stash it away in savings."

The most common purchases from mis-sold PPI claims

1. Holiday - 24%  
2. New vehicle - 22%
3. Home appliance(s) - 19%
4. Bills - 17%
5. Home furnishings - 13%
6. Put it in savings - 12%
7. Clothes - 10%
8. Gadgets - 8%
9. Shoes - 5%
10. Groceries - 3%

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