Spend-happy Brits risking problem debt
Spend-happy Brits risking problem debt
Tuesday 10th June 2008
In a poll conducted by online bank Cahoot, one in four of those surveyed confessed to a shopping habit which sees them treat themselves to non-necessities every week.
Worryingly, 13 per cent of the sample said that their compulsion to shop is eating into their overdraft, car repayments, household bills and even their mortgage repayments.
Matthew Timms, director of Cahoot, commented: "Despite the credit crunch, it seems the UK fashionistas are finding it hard to cure their 'habit'.
"However, while a little of what you fancy does you good, with so much economic uncertainty around it's more important than ever to budget carefully."
The failure of Britons to curb their spending comes at a time when people's finances are set to be squeezed more and more this year by soaring food and energy prices as well as higher mortgage repayment costs.
Government figures suggest that this is already leading to a rise in problem debt, with 4.3 per cent more people applying for individual voluntary arrangements (IVAs).
Are you considering an IVA? We can help.
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