Overspending Brits 'end up in financial trouble'
Published On 14 May 2007
The majority of people in the UK admit that they regularly overspend, putting them at risk of getting into financial difficultly and debt.According to Credit Expert, 80 per cent of people in the UK say that they sometimes spend more than they intended to. This is leading millions of people to consider measures such as bankruptcy and IVAs to alleviate their debt.
In fact, the figures found that five per cent of the population have considered taking out an IVA or declaring themselves bankrupt.
A further nine per cent of people say that they have taken out a new credit card in order to pay of debt on an existing card.
"What this research seems to expose is a serious lack of understanding of the long-term consequences of these actions and how it can affect your credit rating," said Jim Hodgkins, the managing director of CreditExpert.co.uk.
"We feel it's imperative that people fully realise the implications of not managing their finances properly."
Recent figures from the Insolvency Service show that more people sought IVAs in the first quarter of 2007.
Compared to the first three months of 2006, there were 47.6 per cent more IVAs agreed this year.
