Despite the credit crunch 60% of people will still shop for clothes this month. Good news for fashion retailers but might this be because they are blissfully unaware of their debt situation?
The average shopper spent £222 on clothes in the past three months, just £7 less than in the same period in 2006, according to new research commissioned by Cotton USA.
The biannual Global Lifestyle Monitor Survey also found that more than two thirds of UK consumers place more emphasis on quality than lower prices when buying clothes.
Strong messages have been put out by the general media (not only the financial papers) to convey the news that the world is heading for economic melt down. So why are so many people continuing to spend unabated. Are they unaware of the extent of their own personal debt? Could it be that they are aware but choose not to care?
New research released by CreditExpert.co.uk suggests that the nation could be taking a bit of a head in the sand approach to its finances. The survey reveals that despite 96% of people claiming to be familiar with their current finances, when questioned further it appears that many of them do not have a clear picture of their credit commitments.
The research revealed that:
- Only one in four (26%) of the population can accurately state how much they have left to pay on their loans
- One in five (20%) admit to only planning finances once every six months or less
- One in ten admit to having no idea about how much debt they are in
The younger generation (18 – 34 year olds) are the worst when it comes to financial management. Nearly a quarter (23%) admit to being bad at managing their finances and almost one in five (18%) claim to have no savings, compared to 13% of all adults who claim to have no savings.
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