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Consumer Loans in Spain Reach 20-Year High Before Summer Holidays

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More people in Spain are taking loans to pay for holidays.

A loan is money that a bank gives you. You must pay it back later.

These loans are called consumer loans. People use them to buy things, not houses.

Now, consumer loans in Spain are at the highest point in 20 years.

This happens before the summer holidays. Many Spanish people want to travel.

But holidays cost a lot of money. So, people borrow money from banks.

This is called debt. Debt means money that you owe.

More Spanish people have debt now because of holiday costs.

Banks say this is the biggest number of loans in two decades.

Experts are watching this trend. They want to know why it happens.

Maybe people want nice holidays but do not have enough money.

So, they use loans instead of saving money first.

Vocabulary8 words

loan
money a bank gives you that you pay back later
consumer loan
a loan you use to buy things, like a trip
debt
money that you owe to someone
bank
a place where people keep and borrow money
borrow
to take money and pay it back later
trend
something that happens more and more
decade
a period of ten years
save
to keep money instead of spending it

Quiz

1. What has reached a 20-year high in Spain?
2. Why are people taking these loans?
3. True or False: This is the biggest number of loans in ten years.

Fill-in-the-blank listening

Play the audio again and fill in the missing words as you listen.

More people in Spain are taking _____ to pay for holidays.

A loan is money that a _____ gives you.

These loans are called consumer _____.

Now, consumer loans in Spain are at the highest point in _____ years.

This happens before the summer _____.

But holidays cost a lot of _____.

So, people _____ money from banks.

This is called _____.

More Spanish people have debt now because of holiday _____.

Banks say this is the biggest _____ of loans in two decades.

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