After the financial fright caused by the global financial crisis two years ago, Kiwis put their big spending plans on hold and adopted a "wait and see" attitude before taking on more personal debt.

The value of personal loans taken out nose-dived from $13.25 billion in 2008 to $12.5 billion in 2010 and has remained flat in a sign that people are deferring their big ticket purchases such as new cars, holidays and renovations funded through personal lending.

According to leading research and ratings group, CANSTAR, personal loans are expected to regain their popularity as the economy picks up and confidence again returns to the market.

"There are many situations where you need to spend money before you actually earn it," CANSTAR New Zealand National Manager, Derek Bonnar said.

"The quickest way to access money in advance may well be a credit card but a personal loan is much safer, particularly for those who struggle control their spending urge."

"Taking out a personal loan rather than maxing out a credit card is a more measured way of managing debt because you commit to repaying the money in regular installments, and there's no putting your hand out for more."

"Considering a personal loan for something you've always wanted is a great way to test whether you're spending with your head or your heart," Mr Bonnar said.

CANSTAR today released its inaugural personal loan star ratings report, evaluating 27 different personal loan products from 13 lenders to determine which loans best suit the needs of consumers looking for a debt consolidation, unsecured or secured personal loan.

The report awarded five stars to those offering outstanding value through a mix of the best rates and features. The five-star products are listed below:

Consumers can download this report on www.canstar.co.nz and go directly to the personal loan type that suits them.