Debt-a-Holics find insane reasons to borrow

While most UK consumers are crying over their ‘mountain of debt,’ debt counsellors are shaking their head at the stupidity of many adults. On one side of the fence are those who are borrowing money to pay council taxes or heating bills. These people can be excused for borrowing a loan to pay for an ‘expendable purchase.’

But – plastic surgery? Forget the fundamental rule of finance, ‘never borrow money for daily expenses’, how can a bank agent, in good conscious, tell a young professional with a mortgage, student loans, and family responsibilities that they are approved to borrow money for a nose job?

The number of personal loans that are ‘used for cosmetic surgery’ are increasing at a ridiculous rate. There is nothing wrong with joining the ‘perfection’ culture. Going into debt and risking your house to tighten you skin, or remove a bit of fat, is cannot be viewed as a financially responsible choice – no matter how you evaluate it.

A new report from Sainsbury’s Bank reports that £5 million worth of personal loans have been used for plastic surgery. One in five personal loans that are approved for cosmetic surgery are for men, averaging £6,500 per client.

Steven Bailie, loans manager at Sainsbury’s Bank, remarked: “As it becomes less taboo for many people, a growing number of men and women may be looking to improve their looks and fund this with loans.”

“However these procedures can be costly and for those that take out a loan to pay for treatment, it is important to shop around for a competitive rate,” he added.

The pressure for women to reach size 0, and baby boomers to remain 40ish has caused a boom in the number of surgery operations performed each year will increase.

Gambling and other foolish endeavours aside; there are countless ways that the average UK consumers have driven themselves into debt without considering the consequences. According to different reports, there must be some well-dressed, fabulous looking people sitting in court waiting for their insolvency petition to be considered.

Female UK consumers are building huge debt loads on their credit cards. Almost 100% of this money is spent on lifestyle purchases, shopping and fashion. Women seem to have a hard time understanding that a lifestyle is something you live, not something you buy.

Price comparison site Uswitch.com released a report on the spending habits of women. The female population owes more than £20 billion in unsecured loans and an overdraft debt of £4.6 billion with an average total of £515. Now, I am no expert, but if all of those women cancelled their credit cards, it should rock the foundation of the ‘debt mountain.’

Approximately 72 per cent of the UK’s female consumers are debt-a-holics. They shop on their cards regularly. Many of these women have £2000 worth of clothing in their closets at any one time. That is not the crunch! Polls show that more than half have at least one designer outfit they forgot about and/or never wore. I’m not sure about you, but if I bought a designer ‘anything’ it wouldn’t be lost in the back of my closet.

The total cost of these indulgences? The average woman has an unsecured loan balance of £8.092.97, 75 per cent generated from fashion shopping and grooming.

It wouldn’t be so problematic if people who ‘luxury buy’ products and services were diligent in their repayments, but it seems that they are so busy looking for lost clothing, or seeing if their nose needs a touch up, that they forget to pay their monthly bills.

Ann Robinson, Director of Consumer Policy, for Uswitch.com said: ‘Fat used to be a feminist issue, but it looks like it’s been overtaken by debt. In today’s celebrity obsessed society, where women emulate the lifestyles and shopping habits of their favourite fashionistas, it’s not surprising that women are becoming more interested in Size Zero than 0% APR.’

Of course, women are not the only ones to blame. Recent research also showed that many people are saving for a holiday. Unfortunately, they are avoiding debt payments, and reducing debt, to save.

The UK loves borrowing. Borrowing has a cult following. Household debt has doubled since 2000. Much of this is lifestyle spending. Look at the large number of people who max out their credit cards for Christmas, and then just look for the table where they can get another card, instantly.

Many people may believe that borrowing for a holiday is a necessity, but the truth is 43% of all households do not borrow any money, according to figures from the Bank of England. This means that many people are borrowing money to feed a habit.

The truth is, ‘Debt-a-holics’ comprise a very small part of society. These people are addicted to spending. When they don’t have any money left, they borrow. When their borrowing maxes out, they go bankrupt. When their bankruptcy term is over, they start spending again. A vicious cycle that follows a family from one generation to the next.