Could someone define binge spending?

[Duane Pipe]

As above chaps, this is bothering me and I can't decide an answer.

Can someone let me know when the boundary of reckless spending is crossed? We keep hearing how our over consumption has led to our downfall but is there a definable tipping point?

Is it possible to determine whether I am being unncessarily tight, living within my means or unsustainably overstretching my wallet? Does the current downturn mean that I should pay off all debts, sit on savings, not take any loans out, or that I should not go on holiday/go on holiday to Scotland/ lob it on the credit card and escape to somewhere exotic?

It's clearly dependant to a point on individuals income levels but do all these individuals now have a point that should be deemed reckless rather than sensible with the odd extravagance.

I'm sure this doesn's make any sense to anyone...

[mrmr96]

I think borrowing's ok, so long as you can afford to pay it back.

Maybe that's a bit too simplistic?

[ShadownINja]

I think it's down to when it adversely affects your life much like any other addiction. Mind you, it was so easy to get credit that by the time it adversely affects your life, you're in a hell of a lot of trouble so maybe that is a poor measure.

Edited by ShadownINja on Tuesday 23 December 13:10

[paddyhasneeds]

I see it partly as the link between how much you owe and how quickly you'd be totally fked if you lost your job tomorrow.

[Duane Pipe]

paddyhasneeds said:

I see it partly as the link between how much you owe and how quickly you'd be totally fked if you lost your job tomorrow.

That's the sort of thing, but what's the 'link'?

[SpeedIsProgress]

Binge Spending,

Definition: Gordon Brown's primary hobby.

HTH

[bkay88]

Binge spending is relative to the income/wealth of the spender, so it's impossible to identify a single value for this.

I'd say: Spending money on what you WANT which you cannot afford without sacrificing things you NEED.

[paddyhasneeds]

Duane Pipe said:

paddyhasneeds said:

I see it partly as the link between how much you owe and how quickly you'd be totally fked if you lost your job tomorrow.

That's the sort of thing, but what's the 'link'?

Would you want an extra months money in the bank to cover unforseen circumstances or do you want that nice 52" plasma telly to go with your Sky HD?