As debt management problems worsen for millions of consumers around the UK, new research has shown that Britons spend billions of pounds each year to “keep up with the Joneses”.
Peer pressure prompts 19 per cent of people in the UK to spend money when they can barley afford to, according to a study involving 1,450 British consumers carried out by CreditExpert.co.uk.
A quarter of those who succumb to peer pressure admit that they overspend in an effort to avoid social embarrassment, while people aged between 18 and 24 are statistically most likely to splash out for this reason.
Jim Hodgkins, managing director of CreditExpert.co.uk, commented: “While it’s great to be generous at the bar or on a date, we should be spending because we want to and not because we feel pressured.”
“Spending beyond your means because of peer pressure can result in mounting debts,” he added.
Moneyfacts.co.uk warned young consumers recently that credit card debt accumulated at university can lead to long-term financial difficulties.