Many consumers are failing to stick within their monthly budgets and are spending beyond their means.
Women overspend more than men.
A third of Britons are blowing their budgets on a regular monthly basis, according to new research revealed by a short-term loans company.
Lending Stream found that 33% of consumers admit to suffering from ‘salary dysmorphia’ and spend more than they can afford – an average overspend of £265 for more than seven months of the year was calculated amongst this group. This equates to £1,858 per person.
Unforeseen expenditure, such as car break-down expenses and emergency dental work, was the top reason cited for overspending. This was followed by providing for the family, purchasing treats and bowing down to peer pressure from friends.
Women were found to overspend more than men with their top expenses ranging from groceries, clothes, holidays, takeaways and presents.
Just under 35% of young people between the ages of 18 and 24 said they overspend regularly where as just 24% of over-55s admitted to blowing their budget.
People in certain professions were also found to spend more than others. Half of those working in promotions said they overspend followed by 47% and 46% of those working in the legal and recruitment sectors respectively.
Chris de Boer, Marketing Director at Lending Stream said: “Although at first glance it might seem shocking that a third of people don’t stick to their budgets for more than seven months each year, unforeseen expenses such as car repairs or household appliance failures can easily force people to overspend, leaving them extremely financially stretched”.
