Many Australians, especially the younger generations are obsessed with celebrity image, and pressure to keep up with the ever-changing style of the stars is driving an annual $8.7 billion credit card spending spree. The modern day cult of celebrity is now so pervasive that young men and women alike are racking up expensive credit card debts to copy the looks and lifestyles of the rich and famous. Matching celebrity lifestyles is creating debt for young Australians at an astounding rate!
A recent study conducted on the rise of celebrity culture in Australia, reveals that almost 90% of young Aussie woman feel that they are expected to match the idealised images and designer wardrobes of the celebrities. This isn’t really surprising when you consider that celebrities are found on every source of media, not to mention they can be intimately followed by the likes of reality television series and social networking sites such as Facebook and Twitter.
The biggest culprit of this obsession is women aged 18-34 years. Two in three women admit to using their credit cards to purchase items to mimic celebrity style. This dangerous fascination is leading to many Aussies maxing out their credit cards by spending thousands of dollars a year on clothes, accessories, hairstyles and beauty treatments popularised by the stars.
However it’s not only the women, nearly half of Aussie blokes aged 18-34 years admit to being influenced by the style of Hollywood’s leading men. Aussie men have also admitted to purchasing clothes, beauty products and even sports cars to emulate a celebrity lifestyle.
Celebrity Endorsed Debt for Young Australians
Both men and women are likely to buy the never-ending ranges of celebrity endorsed products, whether it is a celebrity promoting a company’s product or the product itself is owned by a celebrity. Just look at all of the celebrity fragrances on the market as one example.
Many young Aussies are none the wiser of the repercussions their spending habits could have on their future. Not only are they setting themselves up for years of debt and interest repayments, they are also potentially facing bankruptcy. Bankruptcy is the worst financial result to any individual’s life. By filing for bankruptcy you have instantly put yourself in a position of uncertainty, as it can negatively affect so much of your financial freedom.
Limitations of bankruptcy
If you are bankrupt, you cannot hold certain licenses, there are restrictions on employment, and you may be required to pay part of your income to a Trustee. You also must obtain the Trustee’s permission to travel overseas, some of your divisible property may be sold and any divisible property you acquire during bankruptcy, vests in your Trustee. Also when you are bankrupt you are limited to obtaining loans and credit.
Manage your debt
It is important to get a hold of your finances before they become too difficult to manage. Many young Aussie is excited by their ability to use their first credit card, and they can easily forget that every payment needs to be repaid, and due to interest you usually end up paying more for the item as a result of placing it on your credit card. Credit cards should be used as a tool for purchases such as airfares and for emergencies. You should intend to make the repayments in full as soon as possible to avoid accruing interest charges. If you find that you need to make everyday purchases such as groceries or petrol on your credit card because you lack the funds to purchase these items from your income, then you could be heading for a trouble-filled financial future.
If you are finding it difficult to make your debt repayments on credit cards or personal loans then you should speak with one of our experienced debt consultants today.