22 January 2008
Britons are finding it increasingly difficult to pay back money borrowed on personal loans and credit cards, new research from uSwitch suggests.
The study shows that 4.8 million UK adults, perhaps influenced by the glitzy lifestyles of their favourite stars, are spending more than they earn - and that almost twice that number barely broke even when their monthly expenditure was totted up.
However, the ongoing credit crunch has made credit harder to secure on the high street - and retailers announced disappointing Christmas sales earlier this month.
What's more, with fears of an impending recession ever-greater following yesterday's share crash on the global stock markets, debtors could soon find their financial problems worsening still further.
Ann Robinson, Director of Consumer Policy at uSwitch.com, commented: "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."
She added: "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."
The uSwitch study provided further evidence of an 'affluenza' epidemic by showing that spending on non-essential items has increased by 65% over the past decade.
Similarly, the number of people who use debt to fund their spending - whether by taking out a personal loan or by using a credit card - has grown by 104% over the same period.
Sometimes a personal loan is a good choice, perhaps you want to consolidate your credit cards or buy a new car. Whatever your needs, let uSwitch.com help you find one to suit. We're impartial and comprehensive and won't charge you for using our service. Compare personal loans and apply online.
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