Thursday, March 1, 2007
Category:
Consolidation
Recent research from uSwitch reveals British women’s spending habits.
The fashion spending capital of Britain is said to be Birmingham where women spend an average of more than £1,800 per year. Half a million British women admitted sneaking their fashion buys onto their partners’ credit card.
Average personal debts as a result of shopping are £8,092.97 with a collective of £61.96m. Indebtedness amongst British women is said to be shocking as their credit card debt exceeds £11bn, and they owe more than £20bn in unsecured loans. On average, British women have an overdraft debt of £515 and over a third rely on their overdraft every month. Women’s overdraft debts are currently £4.6bn.
The use of unsecured credit to purchase fashion items is abundant among Britain’s shopaholics, with 72% admitting to using credit cards, store cards, overdrafts or loans to finance their spending.
Ann Robinson, Director of Consumer Policy, for uSwitch.com says: ‘Fat used to be a feminist issue, but it looks like it’s been overtaken by debt. In today’s celebrity obsessed society, where women emulate the lifestyles and shopping habits of their favourite fashionistas, it’s not surprising that women are becoming more interested in Size Zero than 0% APR. Indebtedness because of shopaholicism is the result of easy accessibility to loans, credit cards, and store cards and highlights the need for consumers to take some personal responsibility for managing their own financial situation. By shopping around for the best deals, taking advantage of 0% introductory rates and switching utility providers to get the best available prices on household bills, women can follow the Shopaholic’s guide to managing their finances and still enjoy the pleasure-rush of a new purchase without racking up more unsecured debt. Its all gain and no pain.’
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For those who have racked up large amounts of debt on credit and store cards, could consider consolidating these with a debt
consolidation loan. One of many options to consolidate debt, debt consolidation loans can be secured on homes. Monthly repayments may be less than those for credit cards however it is important to remember that repaying borrowing over a longer term may increase overall interest charges. With a debt consolidation loan, you’ll know the exact amount and debt payment will be taken each month and the need to juggle multiple payments is reduced. Debt consolidation loans can be repaid over a term of 5 to 25 years.
