One fifth of singles use credit cards and loans to fund lifestyle
March 22, 2011
Credit cards can come in useful for many things, from paying for everyday goods and then repaying the balance in order to earn rewards to providing a financial lifeline in the event of emergencies. However, it seems that there are many people that are determined to get themselves into debt on their credit cards simply to fund a certain lifestyle according to reports, with research showing that one fifth of single people regularly use their credit cards as well as loans to fund a lavish lifestyle.
The survey was carried out by Bright Grey and showed that one in five people living alone were using credit cards and loans to fund their lifestyles. Another one in six people living alone said that they were using their overdraft facility in order to keep up a particular lifestyle. In total around 17 percent of single people living alone said that they regularly overspent each month. Out of these 25 percent said that they overspent because they were paying out money to maintain an enjoyable lifestyle.
The average monthly take home pay for someone that lived alone was £1267 but singles have been saying that they need around 25 percent more than this to maintain their lifestyles, which would equate to an average £1594. The survey results showed that 35 percent of those polled felt that they had to spend money whilst 24 percent said that they did it because they enjoyed it.
Tags: useful, particular lifestyle, Credit history, emergencies, debt, average salaryA spokesperson for Bright Grey said: ‘There is a real concern that, for many people, high mortgage and rental prices can mean that spending choices are limited. Yet more worryingly, it seems that the average salary is far too short for some, who just can’t help but overspend in order to maintain their existing lifestyle.’