Research highlights UK debt denial
The UK is in denial about debt, according to new research from CreditExpert, the credit report provider.
Although 96% of Brits claim to be familiar with their current finances, a survey by CreditExpert revealed that only 26% of borrowers could accurately state how much they have left to pay on their loans and one in 10 admitted to having no idea how much debt they are in.
Many of those polled were in the dark about financial jargon as well, with 36% of the population unsure of what APR (Annual Percentage Rate) is and 48% unable to recall the APR on the credit cards they hold.
Of those aged between 18 and 34 years old, 23% admitted to being bad at managing their finances and 18% claimed to have no savings. In comparison, 13% of all adults claimed to have no savings.
Jim Hodgkins, managing director of CreditExpert, said: “This research provides a worrying insight into people’s perceptions of their finances. It is clear that many of us are not as familiar with our finances as we believe. This could lead to disappointment when people are planning to get a loan or change existing credit arrangements. Having a better understanding of your credit report could make the difference between being refused credit or being offered credit with a higher APR.”