Many Brits overspent in 2007
February 15, 2008
Worrying data from a recent report suggests that last year over five million Brits ended up spending more than they earned, with some officials branding Britain a nation of spendaholics. The reports suggests that the spending of many Brits spiralled out of control last year, with a worrying number of people spending far more than they could afford to, often on unnecessary items and luxuries.
The report went on to state that an increasing number of British consumers are becoming reliant on their credit cards to fund necessary day to day purchases and keep them financially afloat until payday comes around. Many are also using their overdrafts on a regular basis to keep them going until they get paid.
One industry official recently said: ‘Britain is suffering from a bad case of affluenza. We are caught in the grip of a spiral of conspicuous consumption where it’s no longer enough to keep up with the Joneses, but instead we want to live like our favourite celebrities. ‘
But it’s clear that our salaries can’t keep up with our “Hello” lifestyles. The shock reports from the high street are the first signal that this trend is changing and, with the credit crunch beginning to bite, consumers need to start paying serious attention to their spending habits.’
She said that consumers need to look long and hard at their spending habits this year, adding: ‘The disastrous December sales figures show that consumers have started reigning in their spending. But the shock report barely scratches the surface of the problems facing consumers this year. Now is the time for a financial makeover and for everyone to take a long, hard look at their budget.’
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