4 in 10 Brits ‘Not in Control of Their Finances’
October 28, 2015
As many as four in every ten British adults is not in control of their finances, according to a recent study looking into the ways in which UK consumers handle their money.
The research found widespread struggles when it comes to managing personal finances and understanding how different financial products work.
In fact, the inquiries found that as many as one in five people can’t read and understand their own bank statements, with one in three apparently not able to calculate how much would be added to a £100 savings balance over 12 months when an annual interest rate of 2 per cent was being offered.
It was also found that 21 million adults throughout the UK have not been able to establish in excess of £500 worth of savings, which leaves them potentially vulnerable to serious difficulties in the event of unexpected demands on their finances.
Almost as many people, 19 million, are understood not to be confident in their own abilities when it comes to budgeting effectively and managing money with confidence.
Almost 8 million are believed to have problems with debt but as few as one in six of those people have sought help in coping with the consequences or finding solutions to their specific issues.
“Four out of ten adults are not in control of their finances, so for a great many people money is a constant source of worry and stress,” said Andy Briscoe, from the Money Advice Service, which commissioned the recent research.
“This is a problem first and foremost for the individuals concerned and for their families, but it also has wider implications for society and the economy.”
The Money Advice Service has launched a new strategy that it intends to bring together the combined efforts of debt charities, regulators, government departments and financial service companies to promote improved financial capability across the UK.
“The stubbornly low levels of financial capability in the UK can no longer be tolerated,” said Briscoe.
Scotland Debt Solutions has helped thousands of people resolve their debt management problems and to become debt free. Call us today to arrange a free consultation.
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