Brits in the dark about level of debt

As a nation, we're in the dark about our finances, according to new research released by CreditExpert.co.uk.

The survey reveals that despite 96 per cent of us claiming to be familiar with our current finances, when questioned further it appears that many of us do not have a clear picture of our credit commitments.

The research revealed that:

Only one in four (26 per cent) of us can accurately state how much we have left to pay on our loans
One in five (20 per cent) admit to only planning finances once every six months or less
One in ten of us admit to having no idea about how much debt we are in

Jim Hodgkins, Managing Director for CreditExpert.co.uk, comments: "It's alarming to see that while almost the entire UK population think they are on top of their finances, many aren't. Keeping track of your commitments and planning for the future are always important and in addition to checking bank and credit card statements, you also need to regularly check that your credit report is accurate and up-to-date."

APR - Approximate Price Reckoned

As well as being unaware of what is going on in our credit accounts, a significant proportion of us are also unclear about the APR (annual percentage rate) we are charged on credit cards, loans and overdrafts. Whilst most of us know our overdraft limit, the study revealed that over a third (36 per cent) of the population are unsure what APR is. The lack of APR awareness is even more marked when it comes to credit cards, with 48 per cent of the nation unable to recall the APR on the cards they hold.

Young Money

The younger generation (18 - 34 year olds) are the worst when it comes to financial management. Nearly a quarter (23 per cent) admit to being bad at managing their finances and almost one in five (18 per cent) claim to have no savings, compared to 13 per cent of all adults who claim to have no savings.

On loan

The research also reveals the British public are not confident when it comes to applying for loans. Twenty three per cent of us expect to be refused a loan of £1,000, 42 per cent do not believe we could secure a loan of £10,000 and 66 per cent think that we would be refused a loan of £30,000.

Jim Hodgkins added: "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. If you want to take greater control of your finances, an online credit report monitoring service such as CreditExpert.co.uk can help by providing a summary of your credit status and advice on how to improve it. Get a 30-day free trial today at creditexpert.co.uk."