Brits would benefit from financial workout

A massive 99 per cent of Brits could do with a financial workout, according to Abbey Banking. Just one in 100 Brits manage all aspects of their finances well.

The research from Abbey banking looked at the personal finance behaviour of Brits and gave them a score according to the financial products they hold, the competitiveness of these products and how often they shop around for better deals. The products assessed in the study were bank accounts, mortgages, savings, insurance and credit cards. A lower score indicates better management while a higher score means room for improvement.

The average score for the UK population was 43, with women returning an average score of 46 whilst men scored a leaner 41. Women were weighed down by a number of factors. 31 per cent have not got their mortgage at a competitive rate; 25 per cent have not shopped around for insurance products; and 70 per cent have either no savings or only enough to maintain their standard of living for less than three months.

Comparative figures for men were 26 per cent don’t have a competitive mortgage rate, 17 per cent don’t shop around for insurance and 61 per cent don’t have three months worth of savings.

The fittest regions in the UK were Wales and the South West (with a score of 42) whilst those in the North of England scored 46. The North’s score was compounded by a high number of people in this region who have an uncompetitive mortgage rate (35 per cent), a credit card balance on their issuer’s standard rate (23 per cent) and a current account with an interest rate of less than one per cent (41 per cent).

Steve Shore, Abbey Director of Banking, said: "Less than a third of people score less than 30 which suggests that the majority of the population could do with a financial workout. But with so many deals out there, it really needn’t be strenuous! Why not start with your bank account – nearly three-quarters of the population are settling for an interest rates of less than 3 per cent, yet there are deals out there like Abbey’s that pay 8 per cent on in-credit balances.”