New research reveals that one in ten are in the dark about their debt levels. CreditExpert report that although 96% claim to be familiar with their finances, this statement could not be further from the truth as:
- 36% do not fully understand what APR means.
- 26% do not know how much they have left to pay on their loans.
- 20% only plan their finances a maximum of twice a year.
- 10% do not know how much debt they are in.
As well as being aware about your outgoings, it is important that you understand what APR you are being charged on your debt. Although most of those surveyed were familiar with their overdraft limit, almost half were unaware what their APR was on their credit cards.
Managing director of CreditExpert, Jim Hodgkins recommends that you keep on top of your finances and plan for the future. Simple tasks include checking your credit card statements so that you are aware of your spending. He adds that it is “alarming to see that while almost the entire UK population think they are on top of their finances, many aren’t.”