Monday 9th June 2008
The global credit crunch might be causing people to tighten their belts, but not when it comes to new clothes, a new study has found.
Research carried out by Cahoot found that Britons tend to set aside ten per cent of their income to spend on new togs, 90 per cent of whom end up exceeding their budget.
A quarter of people polled said they had a shopping 'habit', and 13 per cent are scrimping on mortgage repayments and other bills, or going into their overdraft, to finance spending sprees.
"Despite the credit crunch, it seems the UK fashionistas are finding it hard to cure their 'habit'," said Matthew Timms from the online bank.
"However, while a little of what you fancy does you good, with so much economic uncertainty around it's more important than ever to budget carefully."
The report did reveal, however, that many people cut back on other areas of expenditure in order to still be able to hit the clothes shops. Some 29 per cent cut back on nights out, while 28 per cent eat out less.
Figures from Money Expert showed recently that the number of people worried about debts rose from 35 per cent to 38 per cent in the last three months.
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UK economy
Just a few days ago the main powerhouses behind the EU met to discuss a joint effort to bolster the European economy and pull the EU from the brink of financial collapse. They all shook hands,... 
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