Released on: June 5, 2008, 11:24 pm

Press Release Author: Tom Darwin

Industry: Financial

Press Release Summary: A study by Credit Expert has shown that people lack the basic
understanding about their financial situations and do not realize the obligations
that they hold to the loan lenders in case of debts.

Press Release Body: This is a recent finding from the credit reference agency,
Credit Expert that even though most people claim and think that they understand
their personal debts, there is a major percentage which does not realize the
obligation that they hold for their debts.

The research showed that even though 96 percent respondents claimed that they held
full understanding of their personal loans and debts, an accurate detail of how much
they owed to the personal loans providers was obtained from only one out of every
four people. Worse, one in every ten people had no idea whatsoever as to how much
money they had borrowed through personal loans and how much debt they were in. the
research also showed that about only 20% that is one of every five people carried
out any planning of finances in every six months.

Jim Hodgkins, managing director of Credit Expert said, "It is very alarming when you
realize that almost everyone in UK thinks that they are managing their finances
well. However, that is far from the truth. It is very important that track is kept
of your commitments in finances and one should always plan for the future. Also, one
also needs to check that his credit report is up to date and accurate."

The research has also thrown light on the fact that the common person has a lack of
understanding on the APR or the Annual Percentage Rate on credit cards, overdrafts
or personal loans. Around 36% of those questioned were not sure as what actually APR
was. Also, around 48% had no clue about the APR which was charged on their credit
cards.

The research conducted by Credit Expert also showed that the younger generation
especially was not great at keeping their financial commitments, making savings or
understanding their personal finance.

More according to this study was known when things came to get a personal loan
arranged. Around 23% people believed that if they were to borrow £1000 as a loan,
they would be turned down. Another 42% said that they will be refused a loan of
£10,000 while 66% thought that they will not be approved a loan of £30,000.

A conclusion was made by Mr. Hodgkins that in order to maintain ability to loan
money in the future, it is important that individuals understand their financial
circumstances and loan eligibility. If this basic understanding is not there, the
people who are looking for loans could face disappointments. A better understanding
of the credit report could make the difference for you.

Consumers, in addition to examining their financial situations, have also been
advised to make sure that their possessions were covered against loss. Halifax Home
Insurance conducted a study last month which suggested that more than £52b was held
in homes around the UK.
Please visit our website at http://www.firstchoiceloan.co.uk/

Web Site: http://www.firstchoiceloan.co.uk/

Contact Details: Tom Darwin
address1 : 12 clement road
address2 : Calleva park
country : UK ( United Kingdom )
city : Reading
state : Berkshire
Pincode : rg78nn
Phone : 0312 375 910
Email : tomdarwin1@googlemail.com
website : http://www.firstchoiceloan.co.uk/