Debt Knowledge in Decline
People know less about debt and personal finance information than ever before, according to new GCSE style exams. Research by Abbey Banking, which asked a selected group of British adults to take part in a financial matters exam, report that our overall financial knowledge has declined over the past year even though more people should be seeking debt advice due to the current economy.
1 in 7 of the examinees failed to score 40%, which is needed for a GCSE grade C. This time last year, it was only one in 10 who failed to get a C. The number of A grade financial savvy individuals has also fallen, from 30% to 28%.
Steve Shore, Abbey Banking’s director, commented: “Quite worrying given that the credit crunch and cost of living has dominated the front pages for the past 12 months – and people say that they are more interested in understanding their finance than ever before.”
25% were unaware that taking out a secured loan would be securing debts against the home, meaning that there is a risk that the property could be lost to the creditors if the debtor failed to make the necessary secured loan payments.