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This is an advertorial post in association with the Money Advice Service. Every year there are more and more British people adopting the attitude of YOLO (you only live once). The rise of YOLO living, and spending, has seen more and more people deciding to throw caution to the wind and cheer themselves up with an unplanned purchase.
Recent research, conducted by the Money Advice Service, shows that £167m is spent daily on impulse purchases. With 28% of these purchases being made on credit it is easy to see how this could lead to financial problems in the future for many consumers.
Do you know someone who has fallen victim to the rise of YOLO living?
I have a friend who was lured in by the rise of YOLO living at the beginning of last year. When wanting to cheer herself up she decided to purchase a newer car. She went to a reputable dealership, and found herself a nice car. Now a newer car can be a fantastic investment. You may spend less on repairs, servicing, fuel, tax and insurance, but only if you get the right deal!
When my friend failed to get accepted for the dealership finance, with a relatively low rate of interest, she went elsewhere. In her desperation, and while increasingly damaging her credit file, she applied to several companies. Rejection after rejection followed, but she had convinced herself that she wanted the car. By using the services of a guarantor loan company she was able to secure herself the £5,000 that she wanted. Her boyfriend agreed to sign up as a guarantor for the loan. This meant that if she fell into financial difficulty that he would be responsible for meeting the monthly repayments.
This loan came at a huge cost, a staggering £198 a month for 60 months. Even bigger than the financial cost was the emotional cost of using this particular company. They would ring her several times a month, days before the payment was due to leave her bank, to ensure that she was going to pay. They would also regularly try to get her to sign up to further loans. This caused her unnecessary stress and eventually led to her returning to the 0% bank of Mum & Dad for help.
Now my lovely friend has since learned the error of her ways and has worked on repaying her parents. She has also been working on improving her financial situation.
Obviously my friend regretted her choice and this is not uncommon. 13% of people who made a YOLO purchase felt regret and 17% later promised themselves that they would not do it again. A staggering 15% of YOLO purchases were not even wanted or needed items.
How to avoid being lured in by the rise of YOLO living
If you are an impulse purchaser there are ways that you can work on combating this bad habit.
- Ask yourself do you really need it?
- Write a list of items you ‘need’. Look back on it a month later and if you still feel the same then get saving!
- When the urge to impulse buy hits leave the store or close your laptop and find another way to distract yourself. Preferably one that doesn’t involve wasting money!
- Read interest costs, fees and small print before signing up to any credit. Also remember to think about how you would cope if your financial situation changes.
I have been known to make the odd impulse buy. I tend to write down items that I want to buy, or feel I need. I then wait and if I see them for a great price I think about whether I really do need them. This is a fantastic way for me to curb impulse buys.