More than 80% of people feel confident about being able to repay their debts, according to a new study.
Figures from the Lloyds Bank have revealed that of 3,790 people surveyed, who all had at least one unsecured debt, 83% felt confident or very confident that they would manage to meet their future repayments.
Men were more confident about paying off their debts, with 45% feeling very confident compared with 40% of women.
The three main reasons why people took out a personal loan were to consolidate debts in one place (27%), to buy a car or bike (26%) or to make home improvements (20%).
People also take out a loan to pay for a special occasion. More than a third (70%) who did this borrowed money to pay for Christmas, while 46% did so to pay for a friend of relative's birthday.
And it seems that men are more romantic: 22% planned to use a loan to pay for an anniversary, compared to only 8% of women.
Sam Clark, head of loans at Lloyds Bank, said: "It's encouraging that, as confidence in consumer finances continue to grow, the majority of people feel in control of their current and future loan repayments. This is enabling customers to enjoy those special occasions and providing the opportunity to restructure their future borrowing in a more cost-effective way.
"For people who may not be as confident in their current ability to manage their debt, it's important to regularly review your finances and make sure you have the greatest ability to manage your money. This could be by looking at consolidating debt or moving to products that allow greater flexibly and the opportunity to make overpayments without penalty."