Idiot taxes help rise debt levels

Britons are costing themselves more than £4bn (£4.4bn) in so-called 'idiot taxes' each year, which is hindering the debt situation for many.

MSN Money conducted a survey to see how much money was wasted on pointless costs which only happen due to forgetful and stupid acts and came up with the startling figure.

They found that a quarter of people admitted to losing or breaking their mobile phones, which comes in at an annual cost of more than £2bn (£2.4bn), whilst a fifth of people incurred fines for the late return of books or DVDs, to the tune of close to £8m (£7.6m).

Simon Ward from MSN money thinks that people's hectic lifestyles are causing the increase in this form of debt and advises that "trying to keep a more watchful eye out is key to saving money in the long run."

Kevin Still, director of Atlantic Financial Management, says: "This reinforces lesson on household budgeting, 'avoid the avoidable'. High mobile phone usage, expensive contracts, infrequently used gym memberships and renting DVDs or games are all regarded as discretionary spending by your creditors when you fall into debt.

"Self-discipline is key in dealing with your debts or avoiding them to get out of control."

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