Brits 'in the dark' about finances

A new survey has revealed that the British public is not as clued up on its finances as the majority of people may think.

The research, published by CreditExpert.co.uk, found that although 96 per cent of respondents claimed to be clued up on their financial situation, they were actually in the dark about a number of things.

Only 26 per cent knew how much they had left to pay on their loans, while one in ten admitted to not knowing how much debt they were in.

In addition, 36 per cent did not know what APR meant and 48 per cent did not know the APR value on their own credit cards.

The 18 to 34-year-olds came off worse in the survey, with almost a quarter admitting to being bad with their finances.

Jim Hodgkins, managing director of CreditExpert.co.uk, said that the study had provided a worrying picture of Britain's financial perceptions.

"It's alarming to see that while almost the entire UK population thinks they are on top of their finances, many aren't. Keeping track of your commitments and planning for the future is always important and in addition to checking bank and credit card statements, you also need to regularly check that your credit report is accurate and up to date," he said.

A spokesperson from the money education charity, Credit Action, recently urged people not too rely too heavily on their credit cards for household purchases as the cost of living goes up.

In April UK consumer inflation reached its highest level in 13 months driven by high food and fuel costs, according to the Office for National Statistics.