Britons are spending too much money on credit cards, according to a new report published today.
A ten-year study conducted by the Alliance Trust Research Centre has concluded that high consumer spending is creating a dangerous situation for millions of UK homes.
Many households are using loans and other forms of credit to fund a lavish lifestyle that would otherwise be beyond their economic means, the study found.
And a significant number are “carrying on regardless in terms of their spending and borrowing”, despite the fact that the average household economy is somewhat stretched.
In addition, wages growth this year has been the lowest in ten years, another factor that may contribute to a credit time bomb.
Shona Dobbie, head of Alliance Trust Research Centre, said: “British families continue to borrow big and spend bigger which confirms this reality just isn’t hitting home.
“It’s only really thanks to recent economic growth and lower utility prices that we’ve seen even a mild improvement in the predicament facing households.”
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