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Peer pressure purchases `can lead to debt`

17/08/2007

Pressure to keep up with their friends is one of the main reasons that Britons overspend, according to new research.

A total of one in five respondents to a CreditExpert.co.uk survey said that peer pressure caused them to spend beyond their means, with £5,874 being the average debt accrued.

More than one-quarter (26 per cent) of people said they were too embarrassed by their financial situation to avoid spending in social situations, while 48 per cent said they felt pressured to buy large rounds of drinks at the pub.

Others admitted that they spent to impress on dates or to have the right clothes.

"It`s staggering to see how much we`re overspending just to keep up with our peers," commented Jim Hodgkins, managing director of CreditExpert.co.uk.

"Spending beyond your means because of peer pressure can result in mounting debt, which could lead to a bad credit rating."

In severe cases, such debt could lead to insolvency; recent government figures indicate that self-declared bankruptcies hit a record high over the past 12 months.

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