Celebrity lifestyle can cause bankruptcy

The research, compiled by accountancy firm Wilkins Kennedy, is based on figures that show that the majority of bankrupts under 24 are now female.
It concludes that women succumb to the temptation for spending sprees as a reflection to their independence.

Last year, 55 per cent of young bankrupts were female, as compared to 48 per cent five years ago. Overall, 1,560 women under 24 were declared bankrupt in comparison to 1,250 men in the same age group.

The study has revealed that a large number of young women are under debt because they buy designer clothes and accessories to display the "trappings of success."
The research, based on data from The Insolvency Service, found that young women were keener than young men to show off their independence by renting or owning their own flat.
"Five years ago it tended to be young men who got out of their financial depth, but now it is far more likely to be young women who spend irresponsibly," the Telegraph quoted Anthony Cork of Wilkins Kennedy as telling the Daily Mail.

"That gap between the genders seems to be growing. Over the last decade, the pressure on young women to follow the lavish lifestyle of female celebrities has grown immensely," he said.

He added: "In all seriousness we are told that Paris Hilton and Victoria Beckham are role models to be followed. The growing availability of credit has meant that for the status-conscious, who want to exhibit the trappings of success, designer clothes and jewellery seem misleadingly achievable."

Official figures have disclosed that 29 per cent of all 20 to 34-year-olds now live with their parents, as against just 18 per cent of women of the same age group.
Last year, around 67,500 people in all age groups went personally bankrupt in England and Wales, an increase of 89 per cent over the past five years.
Wilkins Kennedy said that overall, those over the age of 45 are the most likely to go bankrupt, as their ability to manage debt is compromised because of falling house prices and rising unemployment.

Almost 40 per cent of those declared bankrupt last year were over 45, with bankruptcy in this age group more than doubling in the past five years, from 10,594 in 2004 to 23,767 last year.