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Consumers tempted to overspend by sale bargains
Archived article dated Friday June 23rd 2006
27.4 million UK residents admit to being unable to resist a bargain buy, figures from Alliance & Leicester Savings reveal.
But this often results in money being wasted rather than saved, with one person in four admitting to spending money on things they have no use for."While it is great for consumers to now have the choice to buy 'more for less', our research has found that we're just buying more," said Mike Woodward, savings manager at Alliance & Leicester.
"Instead of buying the same amount as we did before and saving money, we're now buying things that we don't need, just because it seems like a good deal."
More than two people in five admit they end up buying more than they need when faced with this type of discount.
And getting many things for not-much cash - regardless of their use - feels good, Alliance & Leicester's research reveals.
Psychologist Mo Shapiro explained: "Shopping has long been a major leisure activity that satisfies the psychological needs of self-expression and fulfilment, but it seems that bargain shopping is a more recent phenomenon.
"Bargains and designer copies have the added attraction of making us think we are beating the system, and seducing us into thinking we are getting something for nothing - giving us a sense of achievement and enhancing our notion of self worth.
"Bargains can also be a status symbol. Indeed, not having to use or wear the items we purchase is a reminder of how 'successful' we are - and how we don't have to limit ourselves to only buying things we need."
But while bargain hunting might feel good, it can hurt in the long term when it leads to higher debts or comes at the expense of saving for the future.
Alliance & Leicester's Mr Woodward added : "There is obviously a deep desire for retail therapy, but people should ask themselves the question - do I really need of all of these so called bargains, or would I rather save for something more worthwhile.
"Why not resist the urge to buy something today, just because it's cheap and save the money instead - that way, when you spot a bargain worth having, you'll have the cash to buy it."
Tagged as: consumers
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