British people live beyond their means, says report
01 December 2008. Almost 40% of Brits plunge into their overdrafts on a regular basis, compared to just 15% of migrants according to IDT Finance research into migrant and British debt. The study also found that 80% of migrants manage to save over £200 on a monthly basis, compared to 57% of Brits who either don’t save at all (30%) or only save up to £100 (27%).
The research shows a big difference in the way Brits approach finances compared to the migrant community and the lessons Brits could learn from their migrant neighbours.
The study, which included qualitative interviews with almost 50 British migrants and a survey of 1000 Brits from across the UK, found that 41% of migrants are saving over £400 a month, with 10% managing to bank £800 a month. In contrast, Brits are having to look to credit facilities to supplement their spending, with over 10% dealing with overdrafts of up to £10,000.
Jamie King, Director, IDT Finance, commented: “This research illustrates the disparity between the native population and the British migrant community’s mentality towards money management. Living beyond our means has become the norm for the average British person with almost 10% owing over £10,000 on their credit card. British people need to adopt a pre-paid mentality if they want to keep their head above water during the credit crunch.”
Other findings from the research include:
• 10% more British women are in debt than British men
• Scotland has the highest amount of people in debt with 48%
• 49% of the UK’s 18-24 year olds are in deb.