Huge 'celeb debts' run up by starstruck Brits

19/06/2009

Young British women are putting themselves deep into debt as they try to live a "WAG lifestyle", it has been claimed.

Many people are seeking out cards and loans to help them spend beyond their means and bankruptcies are up as a result, the BBC reports.

Adila Bhjat, 22, told the broadcaster that her celeb obsession helped her run up £10,000 of card debts.

"I used to go into shops and whatever I saw I'd buy it. I'd just spend away in all my favourite high street shops without thinking about the cost of it all," she said.

"When you see celebrities in magazines wearing expensive designer gear you want to look like that. You've got things like hair extensions, make up, getting your nails done - it all adds up."

Citizens Advice said this week that it had experienced a nine per cent increase in inquiries related to money worries over the past year.

Meanwhile, Insolvency Service data suggest that around 60,000 Britons were declared bankrupt in 2008 - a marked rise over 2007.

EuroDebt director Kevin Still commented: "Peer pressure can be cause of living beyond your means, both for the under thirties and for parents with teenage children that want to have all the ‘must have’ accessories. Despite the recession, media advertising and gossip magazines still reinforce this behaviour as acceptable. Self-discipline and good budgeting skills should be exercised in times of financial difficulty. The same is true of other leisure related expenditure items, where creditors take a firm line with regard to items like alcohol, cigarettes, leisure clubs, clothing, hair care and entertainment.

"Dealing with personal debts is a long-term process and getting expenditure under control is one of the first critical steps, often in consultation with an independent debt advisor. Self-management may be possible, but for many there is a need for on-going support to ensure that priority payments are made ahead of spending on discretionary items, avoiding putting your home and family at risk."

Tags; Housing Debt and Bills, Credit Card Lifestyle,

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