Consumers lack knowledge about personal finance?
Consumers lack knowledge about personal finance?
- Wednesday, 29 September 2010Consumers are unaware of the terms and conditions of personal finance products, such as credit cards or loans, which could lead them into
debt problems.
According to uSwitch.com, 71 per cent of Brits blame a lack of financial education for their
debt problems.
A further 24 per cent have been hit with charges as they have not understood the terms and conditions of a financial product and this lack of knowledge has cost consumers nearly £250 million in total.
Ann Robinson, director of consumer policy at the price comparison site, said: "Our poor understanding of personal finance is costing us money and now looks to be getting worse with each generation.
"While our debt is increasing, our knowledge is decreasing - the situation is a ticking time bomb."
Ms Robinson believes that the government should incorporate some form of financial education into schools to ensure that personal debt levels do not increase.
Constantly living within an authorised overdraft could cause consumers to waste money in charges as interest is charged on a monthly basis, suggested Jasmine Birtles - the founder of moneymagpie.com.

Recent Debt Management Plan News
56% of Brits have no life insurance which could leave family with debt problems
Wed, 04 May 2011More than half of UK adults currently have no life insurance cover, which could mean their loved ones are left with
debt problems when they die...
Brits thinking about retirement advised to seek debt advice
Tue, 03 May 2011Consumers considering their retirement options have been advised to seek professional advice, as they may end up with
debt problems in the future...
Brits planning to attend a wedding should start saving to avoid debt problems
Thu, 28 Apr 2011Consumers concerned about getting into
credit card debt to pay to attend a wedding may want to use their savings instead...
Couples planning their big day can avoid debt problems by negotiating a cheap wedding
Wed, 27 Apr 2011Couples-to-be worried about needing
debt advice in the future after paying for a wedding can ensure they avoid accruing
debt problems by negotiating a cheap wedding...