Peer pressure forcing people to overspendThey're getting into debt to impress friends

18 August 2007

 

A pile of notes and coins.

People are spending thousands of pounds they haven't got trying to keep up with their friends and neighbours, a new report claims.

One in five admitted to overspending due to peer pressure according to a survey of 1,450 people by online credit monitoring service CreditExpert.co.uk.

Over a quarter admitted spending more because they were embarrassed about their financial situation, while 37 per cent said they spent more in social situations because they felt insecure about not fitting in.

Social embarrassment

The survey also found that:

  • 48 per cent felt pressured to buy large rounds of drinks
  • 39 per cent splash out more than they can afford on dates
  • 38 per cent give more money than they would like to colleagues’ leaving or birthday presents. 

Men also admit to overspending £1,964 a year on their cars to keep up with their car-fashion-conscious friends.

Car conscious

Jim Hodgkins, Managing Director of CreditExpert.co.uk, said: ‘It’s staggering to see how much we're overspending just to keep up with our peers. 

‘While it’s great to be generous at the bar or on a date, we should be spending because we want to and not because we feel pressured.’