Although 88% of people claim to be on top of their money, research shows they are not always sure about their finances. They could benefit from some simple positive steps to be more in control of their cash.
The study shows half (50%) of credit card holders haven’t reviewed their monthly payments or balance in the past year. That rises to 82% for people with overdrafts and to 86% for customers with personal loans, the research shows.
The findings reveal that people are not taking proactive steps to ensure they stay on top of their money - 53% of consumers have never checked their credit rating, despite it being possible to do this for free.
And one in five (21%) are unaware that missing a credit repayment can harm their credit score with 25% believing that ignoring a County Court Judgment will not affect their ability to access credit.
Capital One has launched its ‘Credit Made Clearer’ campaign, which features a series of short animated films offering practical financial educational advice. The aim is simply to help out their consumers.
Dr Roger Henderson, senior medical practitioner and stress expert, comments: “This is a classic manifestation of the ‘ostrich syndrome’, where people choose an out of sight, out of mind approach to their finances where the less you know, the less there is to worry about. Often people kid themselves they’re in good financial shape but in reality it’s a different story, which is only revealed when bigger problems occur further down the line.”
