Female Shopaholics Face Debt Crisis

Female Shopaholics Face Debt Crisis

27/02/2007
Shopaholicism is becoming increasingly common in the UK and it is thrusting many into the jaws of financial strife, a new report claims.

For the purposes of its eye-opening study, uSwitch defined shopaholics as those for whom 50 per cent or more of their unsecured debt can be attributed to fashion. The impartial price comparison service has calculated that there are 765,642 British women fighting against this level of profligacy, with some spending more than £1,800 a year on clothes.

The research suggests that these shopaholics have an average personal shopping debt of more than £8,000, contributing to a collective debt of £61.96 million.

According to uSwitch, credit card debt among British women as a whole has now topped £11 billion and unsecured loans for this group have reached an astonishing £20 billion. British women also have an average overdraft in excess of £500 and a third rely on this every single month. Total overdraft debt among women in the UK, on the basis of these figures, has now reached £4.6 billion.

Ann Robinson, director of consumer policy, for uSwitch, observed: "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 nought per cent APR."

Research suggests that female shopaholics earn an average of £18,959 a year, which is slightly higher than the national average of £17,784. Unsurprisingly, these individuals have only managed to save £4,485, which compares to an average of £10,525.

Manchester, Liverpool, Birmingham and Bristol have the greatest concentration of shopaholics, but the Brummies are leading the way in terms of the amount of money spent. Shopaholics in Birmingham are spending an average of £1,813 a year on clothes and shoes.

Interestingly, research company Mintel reported in 2004 that shopaholic women were something of a dying breed in the UK. More than a quarter of those questioned said that they disliked shopping and would only head to clothes shops when absolutely necessary.


http://www.financedaily.co.uk/showNews.aspx?loadID=00322