Image conscious Brits ignore credit crisis and take on more debt to appear wealthier to peers
28 April 2008
Appearances are so important to the British that more than a third of us judge people on the basis of what they wear and many of us go into the red to keep up with richer friends, according to a new survey from CreditExpert.co.uk.
Two-thirds of 18-24 year olds spend more than they can afford so that they can keep up with wealthier pals. Age brings a certain amount of financial wisdom but 36 per cent of over-65s will also overspend in order to make the right impression. In both age groups, the same proportion make snap judgments based purely on appearances.
Gender as well as age has an influence on whether we’ll overspend to keep up with the Joneses. Women are more likely to feel self-conscious if they are with a group of wealthier friends and acquaintances, while men are more likely to spend money they can’t afford.
The Wealth Tells survey was commissioned by CreditExpert, the UK’s leading online credit monitoring and ID fraud protection service. It found the top five indicators of wealth in the UK are:
- Clothes – 34 per cent of us are label junkies who believe that a flashy outfit means a well-off person
- Jewellery – 20 per cent of us believe that lots of bling mean you have a healthy bank balance
- Watches – an expensive watch indicates an affluent lifestyle for 15 per cent of us
- Hair – you need a great haircut to impress 11 per cent of us
We also rate people according to:
- Their gadgets – 11 per cent of us will overspend in order to have the latest iPod, Blackberry or gadget of the moment
- Where we eat out – McDonalds doesn’t cut it in the age of the celebrity chef
- What we drive – 18 per cent of men will go into debt to have the right car
“The urge to keep up with your friends and impress strangers is nothing new but, at a time of tighter and more expensive credit, you can build up real financial problems if you give in to over-spending,” says Jim Hodgkins, managing director of CreditExpert.
“It’s far better to explain to your friends that you can’t afford to keep up than to wreck your credit history and ruin your chances of borrowing in the future. As the Wealth Tells survey shows, you won’t be the only one and many of your friends may actually be relieved that you’ve spoken out.”
One way to keep up with the Joneses while keeping your spending down is to cut the cost of essentials such as insurance, energy, mortgages, loans and credit cards. With the CompareMyBills calculator on LowerMyBills.co.uk, you can see if you’re paying more than average for the area where you live before getting your details matched to the best available deals.
It’s also wise to check your credit report regularly to see that you aren’t spending more than you can afford. Your credit report will provide you with information about what you have borrowed and your repayment record, so you can see at a glance what you owe and how well you’re managing.
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