The top reason for borrowing a personal loan this year is likely to be debt consolidation, Sainsbury’s Bank is predicting.The bank expects about 1.4 million loans - almost one in three of all personal loans - will be taken out for this purpose, worth a collective £11.9 billion.Buying a car will be the motivation that comes a close second, with Sainsbury’s Bank estimating that some 1.24 million personal loans worth around £9.92 billion will be taken out for this important investment.Coming in third are home improvements, still an important expense for most British people - around 793,600 people will borrow a collective £6.35 billion to ensure their homes are in tip-top condition.”When taking out a personal loan, you need to ensure that you shop around to find a competitive rate,” advises Rachel Bereton, loans manager at Sainsbury’s Bank. “The difference in rates on a loan of £10,000 could be as high as 8.0 per cent APR which over five years could mean around £2,180 in excess interest repayments.”