Consumers lack knowledge to cope with crunch
Consumers lack knowledge to cope with crunch
Thursday 21st August 2008
Abbey set a GCSE-style personal finance exam for a group of over 1,000 adults to test their knowledge.
The test showed that 25 per cent were unaware that failure to pay a secured loan meant that your house could be sold to pay for the loan, with around five per cent answering that it involves selling off the contents of a home.
Meanwhile, 88 per cent did not know that the period before a credit card debt starts accruing interest is six weeks.
The results are set to ramp up concerns that the nation is unprepared for the economic downturn after ten years of prosperity and that people consequently lack the financial skills to negotiate the crisis.
Consumers concerned over the state of their finances are advised to seek out specialist debt advice from a debt management company.
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