Millions Spend More Than They Earn Every Month In The UK

More news Record number of personal insolvencies predicted for 2008 Number of Scots going bankrupt hits record high People in their early thirties have biggest debts and are most likely to miss repayments Debt firms told to drop misleading TV and radio advertising Bailiffs to get more powers but not much needed regulation Citizens Advice warns Record number of people going bust - and it's set to get worse	Millions spending more than they earn Every month, nearly five million people in the UK spend more than they earn, with a further nine million just break even, according to price comparison website, uSwitch.com. "Britain is suffering from a bad case of affluenza," warns Ann Robinson, Director of Consumer Policy at uSwitch.com. "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.” The result is that people are increasingly turning to debt to fund their luxury lifestyle. Between 1997 and 2007, spending on non-essential items soared at 2.5 times the rate of inflation, growing by 65% against a modest 48% rise in net income. Over the same period, debt repayments rocketed by 104%, with almost 6 million individuals now resorting to borrowing every month to meet their outgoings. People in Yorkshire have racked up the most debt, a staggering £7,484 per household. This is almost £1,000 more than the average London household debt and almost double the debt owed by residents in Northern Ireland. People in the South West are the worst offenders for living beyond their means. More than one in three (34%) have no money left at the end of the month, compared to one in five Londoners. January 22nd, 2008

More news

Record number of personal insolvencies predicted for 2008

Number of Scots going bankrupt hits record high

People in their early thirties have biggest debts and are most likely to miss repayments

Debt firms told to drop misleading TV and radio advertising

Bailiffs to get more powers but not much needed regulation Citizens Advice warns

Record number of people going bust - and it's set to get worse

Millions spending more than they earn

Every month, nearly five million people in the UK spend more than they earn, with a further nine million just break even, according to price comparison website, uSwitch.com.

"Britain is suffering from a bad case of affluenza," warns Ann Robinson, Director of Consumer Policy at uSwitch.com. "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.”

The result is that people are increasingly turning to debt to fund their luxury lifestyle.

Between 1997 and 2007, spending on non-essential items soared at 2.5 times the rate of inflation, growing by 65% against a modest 48% rise in net income. Over the same period, debt repayments rocketed by 104%, with almost 6 million individuals now resorting to borrowing every month to meet their outgoings.

People in Yorkshire have racked up the most debt, a staggering £7,484 per household. This is almost £1,000 more than the average London household debt and almost double the debt owed by residents in Northern Ireland.

People in the South West are the worst offenders for living beyond their means. More than one in three (34%) have no money left at the end of the month, compared to one in five Londoners.

January 22nd, 2008

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