IVA & Debt Consolidation Advice

With personal debt in the UK pushing towards the £1.2 trillion mark, we might ask ourselves how we spend the money that we borrow. According to a survey by the internet bank Egg – we don’t know.

Egg has compiled a survey of UK consumer spending habits to try and find out exactly where we are spending our money. Apparently, while we shop around for bargains on so-called big ticket items, UK individuals squander £65 billion a year on “lifestyle” purchases such as cigarettes, sweets and soft drinks without giving any thought to the cost.

Half of the people questioned said they didn’t monitor their day to day spending at all, or said that keeping track of it wasn’t a priority. When it came to more expensive items, especially those for which they would have to borrow money, most said they shop around to try and find a bargain.

The irony is that big ticket items are falling in cost, but the prices of snacks and sweets are still rising. In fact, on average, UK shoppers spend £1134 on a holiday, but fritter away £1380 in the local newsagents.

There’s a serious side to the financial survey though. It’s further evidence that we don’t manage our finances in the UK as well as we might. With the country in the grasp of a personal debt crisis, perhaps it’s time we looked to that old saying, “Look after the pennies, and the pounds will take care of themselves”.