Understanding personal finances ‘is key to avoiding debt problems’
Consumers have been told that a good of understanding personal finance issues is necessary if they are to avoid debt problems.
Research from Stroud & Swindon suggests that consumers’ understanding of mortgages is “worryingly low”, with seven out of ten of respondents suggesting that current account mortgages are not real products.
Furthermore, income tax has also been a source of confusion for people, with more than a quarter unaware of the level of taxation for average salaries.
Paul Chafer, sales and marketing director at Stroud & Swindon, commented: “Understanding basic personal finances is key to consumers making the most of their income and, ultimately, avoiding significant debt problems.
“A consumer who set out to purchase a property but didn’t understand that they needed to pay stamp duty or could use a current account mortgage would be at a significant disadvantage.”
He added that it is “particularly concerning” that women are not as financially astute as their male counterparts.
Mr Chafer consequently urged people to make sure they have an understanding of the personal finance basics in place to avoid “devastating” consequences.
People worried about the level of their repayments may wish to seek debt help.
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