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Brits 'eat into mortgage repayments in order to feed shopping habit'

Mon 9 Jun 2008 - Published in Mortgages

Despite rising household bills, a new study from cahoot online bank finds one in four people in the UK admit to a shopping habit which they indulge at least once a week.

Clothes are the most popular purchase with the average Brit setting aside ten per cent of their monthly income to spend on fashion.

However, 90 per cent of us admit to regularly failing to stick to that budget.

Some 13 per cent of those questioned said they eat into their overdraft, essential bills and even their mortgage repayments in order to fund their shopping trips.

Matthew Timms from cahoot said it is vital that people budget.

He commented: "Keeping on top of your finances and setting aside a specific amount each month for treats is a prudent policy, but you need to make sure that while it's sitting in your account, the interest rate is making your money work for you."

The Post Office has calculated that British savers are losing out on approximately £8 billion a year by failing to invest in high-interest accounts.