Need for bling 'could cause bankruptcy'

Young people in the UK could be pushing themselves towards a lifetime of financial difficulties by trying to keep up with the Joneses, research has shown.

While friends in the past may have competed about whose hedge was the neatest, today's 16 to 34-year-olds are more likely to aspire to owning electrical gadgets, designer clothes and expensive cosmetics, a study by Monilink discovered.

They have coined the term "Bling-itis" to explain the phenomenon, which could be encouraging Britons to take on increasing levels of debt.

According to the mobile banking network, 21 per cent said they would rather spend their money on personal treats than save it and 56 per cent said they thought they would be judged on their personal appearance and possessions.

Finacial writer Cliff D'Arcy said that the findings are worrying in the light of the nation's staggering levels of personal debt.

"Two-thirds of these young people have admitted that they are still trying to clear credit card debts that they built up two years ago. This "Bling-it is" is edging them towards bankruptcy," he warned.

According to Credit Action, UK personal debt as of March 2008 stood at £1,430 billion, an increase of £113 billion since 2007.