A treat here, a debt there
If your in insolvency or considering it - be it bankruptcy or IVA - are you aware of how much your 'treats' are costing you?
A taxi here, a cappuccino there and a lottery ticket on the weekend can all mount up to unnecessary debt.
CreditExpert.co.uk has discovered that we spend, on average over £57,000 on treats and non-essential items throughout our working lives. If we had cut out those treats and used them to increase our mortgage payments, we could have reduced the term of our mortgages by up to eight years.
Non-essential items can consist of take-away coffee and snacks, gym membership and soft drinks. Those most guilty of splurging on these items are consumers in the 26 to 35 age bracket.
Pensioners are even guilty of over-treating themselves with an estimated £718 per year being spent on little indulgences.
The most sensible spenders can be found in the South West where only £1000 per year is spent on little treats.
Whilst the odd pound here and the odd pound there can seem unimportant, calculated over a monthly basis, it is easy to see how we can waste money which could leave us unable to pay all of our creditors. This can lead to missed payments and a downward spiral of accumulating debt.
Whilst it is easy to forget about money when out and about, a good budget plan will allow us to ascertain exactly how much or how little is left over per week for those little indulgences, which can make life just that little bit sweeter and make the difference between falling deeper in the debt trap to bankruptcy or controling your finances.
IVA and Bankruptcy News posted on 02/10/2007 16:24:52
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