Fashion driving us into debt

In the Halifax report the average home spends five per cent of its disposable income, or £34.42 per week, on clothing, adding to credit card debt.

Peter Jackson, head of products at Halifax, urged people to be careful with their fashion spending and how it can add to credit card debt: “We can spend ages choosing the right outfit and we should take the same care and consideration when deciding how to pay for it.

“That garment may appear to be a bargain but this can be far from the truth if you are still paying interest on it months later.”

He suggested that consumers who insist on big spending look at credit cards with nought per cent interest offers to help spread payments.

Debt advice can also help people manage their finances while stepping out in style.