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Image conscious Brits take on more debt to appear wealthier
17/04/2008 09:43:00
A third of UK consumers admit to spending more than they can afford when confronted with someone who looks wealthier than them, new research has shown.
Findings from CreditExpert.co.uk revealed that gadgets such as iPods or Blackberrys are causing one in ten of us to spend beyond our budgets in order to give a good impression.
Owning tailored suits and dining out in expensive restaurants are other reasons for overstretching personal finances, showed the research.
Jim Hodgkins, managing director of CreditExpert.co.uk, said that the desire to keep up with friends is not new and there has always been a temptation to use credit to this.
"But using credit to fund a lifestyle you can't really afford can lead to huge financial problems and if you don't keep tight control of your spending and how much you're borrowing, you can easily find you can't afford the payments and start to fall behind with them," he stated.
Previous research from the firm showed that currently 91 per cent of consumers intend not to move due to the credit crisis.
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