Personal Finance – New Research reveals we’re a nation running blind
(5th September 2013) Peachy.co.uk has found that we are a nation struggling to make ends meet, living in our overdrafts and unaware of the interest being charged for our loans.
The research of 2,000 adults living in the UK found that 1 in 10 homeowners struggle with money monthly, running out of their disposable income as soon as all their bills have been paid.
With heavy student loans, ever-increasing rent and high unemployment, 18 to 35 year old proved to be the age group struggling most with their finances, with two thirds running out of cash before the end of the month – leaving no money for savings.
Shockingly, a massive 67% of people either have no idea or just a vague notion about what interest rates they are paying on their credit cards, overdrafts and loans.
Kristjan Novitski, MD of Peachy.co.uk says: “These results show that we are a nation running blind and simply hoping for the best. With the recession, everyone has been put under increased pressure and the reaction to this by many is simply to avoid the problem. However hard it is, consumers need to take control of their finances and think about the long term effects of acting unreliably.”
Other key findings found:
Borrowing from family and friends is the most popular option when it comes to financial support, with a fifth of people having done this.
Yorkshire and Humber appear to be the most financially secure, with just under half (47%) reporting they have never had to borrow money in the past. Londoners are much more likely to dip into their savings (40%). People in Northern Ireland run out of money the quickest with 70% having no money left in their account by the time pay day comes around. 1 in 10 people (11%) are constantly in their overdraft.
60% of people do not know their credit rating score. The lowest earners (under £10,000 per annum) were the most naive about their credit rating, with almost three quarters (72%) unaware of theirs while over three fifths (65%) of the highest household incomes (£100,000+ per annum) know their credit rating.
A massive 67% of people either have no idea or just a vague idea about what interest rates they are paying on their credit cards, overdrafts and loans!
Peachy.co.uk has supplied short term loans to over 300,000 people in the UK with the highest number of their customers coming from London, Manchester, Birmingham, Glasgow and Liverpool. We have a very strict approval process, only giving loans to people who have a regular income of at least £600 per month and will be able to pay the money back to avoid the consumer falling into debt.
Of the 1,800 requests for loans they accept daily, Peachy only approve approximately 5% to ensure they are giving it to people who are responsible.
Kristjan adds: “If you look at the debt situation in the UK, the majority of the problem comes from credit and debit cards as people do not understand the interest they pay. An unbelievable 67% of people either have no clue or a vague idea about what they are being charged which is just crazy. At Peachy we make our repayment rates extremely clear and encourage loan repayment as quick as possible to ensure people do not go into debt.
“The majority of our customers are returning, loyal customers who have proved they are reliable and just need a bit of extra cash to tide them over or spend on extra, unforeseen circumstances. The most popular amount that people borrow is £200 that is paid back within 40 days.”