Credit cards funding Brits luxury purchases?
Study shows household spending on luxury items in the UK now averages £5,850 per year
Britons could be turning to their credit cards to fund premium goods after new research found UK consumers are shunning the essentials in favour of luxuries.
Insurance giant LV= has revealed that household spending on luxury items in the UK now averages £5,850 per year.
More than half (51 per cent) of UK adults now deem weekend breaks and holidays as a necessity and spent a total of £81.5 billion on them between January and August 2011, compared to £78.8 billion during the same period last year.
Eating out and cultural events were also a major drain on finances despite the economic climate and the study shows that 77 per cent of consumers have made cutbacks elsewhere to pay for such events..
Mark Jones, head of protection at LV=, said: "People's lifestyles are, rightly so, very important to them to maintain, despite the economic conditions.
"And people should be encouraged to consider how they will continue to pay for the real essentials as well as some of the little luxuries should their financial circumstances change."
A recent study from investment firm Standard Life found that the majority of Brits are more committed to spending than saving.
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