Credit, Collections & Insolvency News
Millions of consumers feel they are ‘living beyond their means’, a study has found. Researchers discovered a large percentage of the nation fall back on credit cards and overdrafts when wages fail to last until the end of the month according to new research by Vantage Leasing.
Of the 2,000 Consumer surveyed, 43 percent have a credit card to deal with excess spending, 10 percent have an overdraft and 20 percent have both as provisions for when times get tough. Credit card holders who took part in the research admitted racking up around £269.17 per month on their card in an attempt to get by. Of those with an overdraft, 17 percent often find themselves dipping into the red as pay-day approaches.
James Buttrick from Vantage Leasing said “It’s a sad fact that most of us are familiar with the feeling of purse strings tightening as payday fades into a distant memory. When funds are running dry, most consumers have a fall-back set up which they can plunder as needed, but this shouldn’t be seen as a long-term solution to cash flow problems. Many of us could take a look at our lives and endeavour to make smarter money choices going forward to keep our spending habits in check, curbing spontaneous, big-ticket purchases for more sensible payment plans.”
Of those going into their overdraft or spending on their credit card, 36 percent blame overzealous spending at the beginning of the month, straight after payday, for their drought in later weeks. And a disorganised 53 percent have been caught unawares by a bill or payment which has left their remaining funds decimated. The top regrettable purchase for consumers trying to make their cash go further is clothes, which one in four splurges on when their wages land in their account.
Fast food, meals out and nights on the town with friends are among the things we regret blowing money on from time to time. Thirty-seven percent identified a ‘financial blind-spot’ in their spending which eats away at their earning each month. Of these, 57 percent named food as their financial weakness and 41 percent thought they were too liberal with treating themselves. The average Brit spends £101 a month on non-essential products and services they could potentially put into their savings.
In an effort to curb spending, three in five have made adjustments to their daily expenditure. Of these, 48 percent have started taking packed lunches to work and 35 percent have cancelled non-essential direct debits. One in seven has even sold a ‘big-ticket’ item like their car in order to give their account an emergency cash injection. Thirteen percent feel they are terrible at dealing with money, though 35 percent said they are great at navigating their way around their finances.
Buttrick added: “When payday arrives and our pockets are deepest, this is when we are at the biggest risk of irresponsible spending. Whether it’s some new threads you’ve had an eye on all month, a big night out to celebrate or a bigger ticket item like a car or home furnishing, it is worth taking a moment to take stock as impulse purchases could mean your riches are short-lived.”
“At Vantage Leasing we want to better understand the affordability of car rentals from the perspective of our customer, so we can take a responsible stance when advising on whether an offer is in their best interests.”
* Vantage Leasing commissioned the study in a bid to be more conscientious by establishing realistic client aspirations and ensuring affordability comes first.
The company is also committed to providing a fair, responsible service to their customers. To view the findings of the study in full visit: vantage-leasing.com/blog/car-leasing-study-how-vantage-leasing-are-remaining-conscientious-with-their-selling
