In the current financial climate, Americans can ill afford to splash out on luxuries and unnecessary purchases. However, according to a recent report many Americans are getting themselves into debt and using money that they cannot afford in order to lead a more extravagant lifestyle. With many Americans now leading champagne lifestyles on beer money, this is a situation that is causing some concern. Some Americans seem determined to keep up with the Jones’ even if they are struggling financially.
According to reports, some people are splashing money that they cannot afford on things such as new clothes, cars, extravagant holidays and even homes that are financially out of their reach. A recent study has shown that many Americans are more than willing to get themselves into debt in order to find this luxury way of life, which for many could lead to a downward spiral in terms of finances.
Keen to portray a lavish lifestyle
The study was carried out by Fintonic and indicated that one in eight Americans would be happy to take on $1000 or more in debt simply to portray a more lavish lifestyle to others. Moreover, 10 percent of those on $80,000 or more per year were willing to take on $5000 or more in debt in order to enjoy a more extravagant way of life.
The research was carried out in February this year and involved polling 1100 adults in the United States. Officials involved in the study said that people who were on a higher annual salary were twice as likely as lower income earners to get themselves into debt in order to enjoy more luxury. One official said that both traditional and social media tended to glorify luxury lifestyles and that this was part of the problem because it was encouraging people to get into debt in order to portray that particular lifestyle.
With so many people eager to portray a lifestyle that is more luxurious than they can realistically afford, there are concerns that more and more people could find themselves falling into the debt trap. This could lead to years of financial problems but many do not think about the long term effects when taking out finance for purchases that they cannot afford.
Experts said that people are increasingly incentivized to act in this way as a result of the way luxury lifestyles were portrayed by the media, adding that luxury was driven by social and cultural trends as well.