Seven out of ten Brits admit their finances are ‘in a mess’, research revealed yesterday.
A detailed study of 2,000 adults found a large percentage of us have forgotten about old accounts, have no idea how much interest we are paying on credit cards and have even lost track of all our outgoings.
A quarter of adults admit to being terrible with money, while 40 per cent say their outgoings are too high.
Consequently, 53 per cent of people are plagued with sleepless nights as they fret about their finances, and 26 per cent claim their relationship has suffered as a direct result of the mess they’re in.
Top money worries include not being able to ‘get through’ the month, as well as being unable to afford utility bills and basic necessities such as food and drink.
However, when it comes to getting financial help, only one in 10 people would consider approaching their bank.
Virraj Jatania, founder and CEO of Pockit, the world’s most inclusive bank, which conducted the poll said: “Sadly there are many people who struggle to make ends meet, either because they don’t earn enough money or because they have lost track of their personal finances.
“And in a climate where we know the value of the pound is dropping and the cost of basic living is going up, with shoppers being warned to expect price rises, this is very worrying.
“Our researchers found more than a third of people are choosing to not even look at their bank account, because they’re frightened of the consequences. Often, there seems no way out for people who live on a tight budget.”
The study found six in 10 people constantly worry about being able to afford unexpected bills such as car repairs or home maintenance.
More than half panic knowing they’ll have to fork out for Christmas and Birthdays, and a quarter can’t make their wage packet last for the whole month.
Twenty two per cent of people say they can’t afford to go out socially, and 17 per cent are unhappy they’re unable to treat or spoil the children.
When it comes to knowledge of finances, a third of people admit they have lost track of old bank accounts such as ones they took out as a student years ago.
A fifth of those surveyed think they would be shocked if they were to learn exactly how much they owed on their credit cards. 14 per cent have no clue how deep into their overdraft they are.
Only 23 per cent of people polled know exactly how much money they have in their bank account, and only 14 per cent could say how much they owed on store cards and loans.
Sadly, four in 10 couples regularly have arguments about their finances, and one in 10 have ended a relationship because of money.
A further 13 per cent have had to take out a second job in order to boost their financial position, but one in 20 people have actually lost a job as a direct result of their worries.
Getting financial help has never been more difficult – according to a quarter of those polled.
Fifteen per cent of those polled say there aren’t any banks which will give them a credit cards, and 13 per cent struggle because there are no banks which will give them a personal loan.
Seven per cent of British adults – that’s just under FOUR MILLION people – cannot even get a current account.
Additionally, 27 per cent claim they find British banks impossible to deal with – key criticisms being the fact you always have to deal with an automated system, you are treated like another number and for some, money is lent too readily.
Virraj Jatania, founder and CEO of Pockit continues: “Some people, through no real fault of their own, need a little help managing their finances, enabling them to get clever with their spending.
“We acknowledge there are millions of people who are frustrated by or shut out from traditional retail banks and the products and services they provide.
“Today this demographic face stark choices: stick to cash, which makes money management and saving all but impossible; use a friend or family member’s bank or credit card, which can be humiliating; or turn to pre-paid cards with their impenetrable small-print and hidden fees.
“However, there is light at the end of the tunnel. As a brand, Pockit can give anyone, even those with money troubles, access to a proper account, with a MasterCard and so on – without the usual credit checks and bureaucratic sign-up process.”
“This means that on occasions when an expected bill comes in, or a birthday is around the corner, people can budget or access the cash accordingly, because they’ll know exactly how much money they have available when they log into our app or online account.”
TOP 10 MONEY WORRIES
- Not being able to afford unexpected bills such as home repairs and car maintenance
- Having to fork out for events like Christmas / Birthday
- Being unable to make your wage packet last to the end of the month
- You can’t afford to go out socially
- Being able to afford basics such as utility bills
- Being able to treat or spoil the children
- Affording basic necessities like food and drink
- You know you live beyond your means
- You can’t afford to replace shoes and clothing
- You spend your whole time in your overdraft