Mark Gardner, of Latimer Hinks law firm
Issued on behalf of and with approval from Latimer Hinks
HELP AT HAND WHEN THE SHOPPING HABIT COSTS TOO MUCH
Latimer Hinks is warning that shopping addiction is taking an even bigger financial toll in the recession.
The advice from Latimer Hinks Partner Mark Gardner, who specialises in debt and insolvency issues, follows a recent national survey which revealed 25 per cent of Britons are addicted to shopping.
The report said that more people are in the red due to shopping than gambling – 24.8 per cent compared to 0.6 per cent.
Mark said: “When the economy was growing and people’s employment was secure, allied with the guarantee of a healthy pay rise each year, some people may have been able to financially accommodate a shopping addiction.
“But with the soaring cost of necessities such as heat and light, pay freezes and redundancies, shopping addiction, in the current climate, will take a much bigger toll.
“The recent film Confessions of a Shopaholic took a light-hearted look at how a ‘spend, spend, spend’ attitude digs people deep into debt, but it is no laughing matter for those who find themselves in this situation in real life.
He is advising people not to ignore debt, but to tackle it at an early stage to prevent it from escalating uncontrollably.
“Facing up to problems is not always easy, but people need to be honest with themselves and admit they have a problem and seek the appropriate advice to help them sort out their finances.”
Financial experts can guide people through the options open to them, give advice on improving cash flow and also may be able to help negotiate a payment plan with creditors at a smaller rate over a longer period of time.
Mark, whose firm is based in Darlington, added: “Mounting debt can overwhelm people and drive them to despair, but they are not alone as there is help out there to show them how to get their financial affairs back in order.”
Shopping addiction/impulse buying, clinically known as Oniomania, is when someone gets a ‘high’ from spending money on goods and spends excessively on items that they want rather than need, according to Priory addictions specialist Dr Philip Hopley.
He said: “One of the main implications of shopping addiction is debt. People who are addicted to shopping may spend even when they have no money to spend, which can soon lead to debt problems.
“Debts can often spiral out of control and can soon become unmanageable. Other consequences are denial and desperate acts to cover up the addiction leading to the breakdown of close relationships.
“But there is help out there not only to overcome the addiction itself, but to get people financially back on track.”
CASE STUDY
• Married couple in their late 20s.
• The husband was a student and the wife a teacher.
• Had run up £200,000 worth of debt on credit cards and in loans.
• Only had about £20,000 equity in their house.
• Taking out a new credit card to try to pay off balances of other credit cards, but also racking up even more spending on tick and credit cards at the same time.
• Got to the stage where they were so scared by their mounting financial crisis they could not face opening the post.
• Felt they were out of their depth and were emotionally traumatised and stressed by the plight in which they found themselves.
• It took the couple three hours to open the pile of bills and final demands.
• A plan was put together, which allowed them to make a fresh start and put their financial problems behind them.
Mark Gardner said: ”They were living a Rolls Royce lifestyle on a Mini income. We drew up series of proposed solutions, which we put to creditors. They did have to sell their house, but at least they were then in a position to make a fresh start and had managed to escape going bankrupt.
“However, had they sought our help earlier we would have been able to prevent them losing their house. While it is understandable that people feel overwhelmed and frightened, they must resist the temptation to ignore their financial problems. Our advice is to seek help at an early stage.”
ENDS
Photo:
http://www.prlog.org/
