Despite over 36 million people (78 per cent) feeling comfortable with their levels of credit, one in three (31 per cent) are still unaware of how much they are paying back each month and the total amount of their outstanding credit. Finance: The Final Frontier – a report into consumer attitudes and perceptions towards credit, borrowing and money management – shows that consumers are being complacent about their finances.
Despite nearly three-quarters (74 per cent) of UK adults rating themselves good money managers, the report shows that as a nation we find it difficult to commit time to organising our money. Nearly eight million of the UK adult population (17 per cent) claim to only review their financial situation once a year or less of which over 1.8 million actually report that they will never review or sort their finances at all.
Picture Financial is urging consumers to take better control of their finances this New Year, as the report reveals a clear need for even the most carefree consumers to take time out to review and sort their finances.
Julia Dallimore, marketing director of Picture Financial, said “Many of us have already started 2007 with the best of intentions to eat healthier and do more exercise and the same principles should be applied to our finances. Even if we feel comfortable with our borrowing arrangements, regular sorting of finances, particularly credit and borrowing, is absolutely crucial in making sure we are managing our money well and using it more effectively.”
Chris Tapp, associate director, Credit Action, added “Arguably the most significant contributing factor in helping people become more effective money managers is the time spent reviewing and sorting finances. Just checking statements and keeping a simple written budget once a month can make a massive difference, and it need only take a half hour to do.”
With such apathy when it comes to money management skills, it is not surprising that 42 per cent worry that they are not getting the best deal on interest rates and charges. The report also highlights the possible results of having a financial detox with over half (62 per cent) of UK adults admitting to feeling happier when they know exactly where they are with their money.
