Millions of British consumers are ignoring the risks to their finances and taking on debt in order to boost their own image, according to a new report.
A study carried out on behalf of CreditExpert found that almost a third of people have overspent in an effort to appear more affluent and for many this has led to serious debt management problems.
Items of clothing, jewellery, shoes and – particularly in the case of British men – cars are proving to be an irresistible attraction for many people despite the financial risks involved in buying them.
“The desire to keep up with friends isn’t new and there is always a temptation to use credit to do so,” said Jim Hodgkins, managing director of CreditExpert.
“But using credit to fund a lifestyle you can’t really afford can lead to huge financial problems.”
Meanwhile, MoneyExpert reported recently that the cost of spending via
credit card debt has increased over the past six months despite cuts in the Bank of England’s base rate of interest.