Economy
Consumers shopping up a storm of debt |
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| Economy | |
| Written by Catherine Murray | |
| Wednesday, 25 August 2010 | |
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New research shows that UK shoppers are racking up personal debt, despite recession headlines. A research report published by product comparison website uSwitch shows that UK consumers are caught up in recession "shopaholism", amassing nearly £24 billion of unsecured debt. The report revealed that shopaholics have an average personal shopping debt of £3,353 - nearly three times the national average - and that this wave of shopaholism is affecting men as well as women. The Research from uSwitch has found that while four million women are in the grips of shopaholism, the "spend-emic" is also affecting 3 million men, and that they owe more than their female counterparts. An addiction to shopping has often been regarded as a female affliction, says the report, but the poll revealed that while female shopaholics owe an average of £3,353, male shopaholics are saddled with higher personal shopping debts of an average £3,425 each. The report revealed that women tend to spend a larger proportion of their disposable income on shopping - an average £2,436 a year or 51% of their total disposable income - but that "it seems that men have more expensive taste". The men polled by uSwitch said that they spend over £570 a year on designer clothing, nearly double the £300 spent by female shoppers. Men also spend more on grooming: an average of £338 a year on skincare and cosmetics, compared to the £191 spent by women, the report said. The poll also highlighted the following trends:
The way this spending is being funded is also a cause for concern, uSwitch said. The report revealed that half of female shoppers (50%) use a combination of credit cards, store cards, overdrafts or loans to fund their shopping sprees, but amongst female shopaholics this rises to 74%. Female shopaholics are spending a massive 19% of their income on debt repayments, compared to a national average of 8% and shopaholics take longer to clear their debts - seven months compared to the average five months, the report said. The report said that 17% of respondents also admit to having sneaked items onto their partner's credit card. Ann Robinson, Director of Consumer Policy, for uSwitch.com comments, "In today's celebrity obsessed society, any lessons learnt from the recession have been airbrushed out of the picture." "Despite the financial constraints, women have carried on copying the lifestyles and shopping habits of their idols and ignoring the debt they are racking up in the process. But this spend-emic has spread and it's clear that men too have caught on to the joys and perils of shopping," she said. Robinson warns consumers that "it's time for everyone to pay serious attention to their spending habits." "Short-term debt solutions may seem an efficient way to fund spending, but they can also lead to long-term debt if not managed properly. Consumers need to stay in control of their finances - it's easy in the face of feeling impoverished to let go of the spending reins altogether," she says. Robinson advises that "by recognising that risk and not falling victim to it, consumers can feel empowered and enjoy the pleasure-rush of a new purchase, without racking up more unsecured debt. It is all gain and no pain." |
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