Millions of British cosnuemrs are overspending in order to appear more affluent than they in fact are, according to a new report.
A study carried out on behalf of CreditExpert recently found that overspending is motivated by a desire to keep up appearances for almost a third of the population and for many this attitude leads to serious debt problems.
The research also discovered that younger generations of consumers are more likely to overspend for these reasons than their older counterparts, particularly those aged over 65 who pay relatively little attention to how they are perceived.
Furthermore, men are more likely than women to spend beyond their means and risk debt problems in an effort to appear well off, CreditExpert reports.
Jim Hodgkins, managing director of the credit report provider, said: "The desire to keep up with friends isn’t new and there is always a temptation to use credit to do so.
"But using credit to fund a lifestyle you can’t really afford can lead to huge financial problems."
A report released by credit risk management group TDX recently predicted that the number of people entering an individual voluntary arrangement in the UK will increase dramatically over the course of this year.