People racking up debt ‘in order to keep up appearances’

More people in the UK are spending money they do not have in order to keep up appearances, according to new research by Quidco.

Some 14 per cent of respondents admitted they buy certain items or brands just to be perceived by others as more successful than they actually are.

In order to make these purchases, individuals are borrowing money or using credit, which is causing many to fall into high levels of credit card debt. In fact, spenders are lumbered with an average debt of over £6,200 as a result of over-spending on products that are supposed to make them look successful.

Managing director at Quidco Andy Oldham said: "As the cost of living in the UK continues to rise, it's not surprising to see shoppers feeling the pressure to keep up appearances when it comes to success – especially if they have enjoyed the finer things in life up until this point."

According to the research, to be deemed a high-flying success in the UK people need to earn £64,000 a year, own a £578,000 home and a £27,000 car.

The unrealistic aspirations continue with many individual saying these mansions must be kitted out with a 50-inch wide-screen television, a jacuzzi and a team of staff on the payroll.

On top of this, people need to have £15,000 in savings, go on holidays worth £5,000 and own a selection of handbags. Taking all of this into consideration, keeping up appearances in the UK will set consumers back at least £625,000.

As money becomes tighter it appears people are overstretching their finances in order to make it look as though they are coping better than they actually are. For those struggling with a large amount of personal debt, a consolidation loan could help with monthly money management.

Keeping up appearances could eventually lead to many people being pushed to the brink of bankruptcy. In these extreme cases it may be beneficial for people to arrange an IVA to stop it from happening.

By Joe White