A personal finance expert has warned that young Brits are overspending to compete with their friends on items such as clothes, cosmetics and gadgets, leading many of them into financial difficulty, says personal finance writer Cliff D’Arcy.
Research conducted by the UK’s mobile banking network Monilink has shown that more than 25 per cent of people aged between 16 and 34 years old are spending to compete with others and one in five young people are now struggling to pay off their credit card debt.
The research has coined the phrase “Bling-itis” to explain “young people’s obsession with buying flashy goods for the sake of keeping up appearances,” says Mr D’Arcy.
According to the survey, 21 per cent of young people prefer to spend their money on “personal treats” rather than saving it.
Mr D’Arcy warned that buying luxury goods to “look good and feel good” can lead to debt.
Two-thirds of those surveyed say they are still trying to pay off credit card debts that they built up two years ago.
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