Missed payments, late payment charges, we don’t know, do we care?
June 9, 2008
A recent survey carried about by CreditExpert.co.uk has revealed that the majority of us don’t really have much of a clue what’s going on when it comes to our finances.
One in ten of us admits to having no idea how much debt we are in whilst one in five of us admits to only planning our finances once every six months or less. More alarming perhaps, is that a whopping 74% of us don’t actually know how much we owe.
Managing Director of CreditExpert.co.uk, Jim Hodgkins said “it’s alarming to see that while almost the entire UK population think they are on top of their finances, many aren’t. Keeping track of your commitments and planning for the future are 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 added “this research provides a worrying insight into people’s perceptions of their finances. It is clear that many of us are not as familiar with our finances as we believe”.
Not only are missed payments recorded on your credit report and will affect your future credit applications, but you may face a penalty imposed on you by the lender or bank if you have failed to plan accordingly.
Alan Stubbs, a student customer of high street bank Halifax complained: “I forgot about a direct debit the other week and I ended up with a £28 charge on my account because I didn’t have the money in the bank to cover it”. He continued “but that took me over my overdraft so I got an extra £15 charge for interest”. That’s a total of £43 charges for being unaware of a financial commitment. Asked whether this was the first time he had been charged in this way, Mr Stubbs replied “Nah, it happens all the time”.
It makes no sense at all the pay charges on a bill you are going to pay anyway. With a little bit of time and effort; checking your credit report, reading through your bank/credit card/loan statements and knowing when your payments are due, you can avoid any charges, penalties or black marks next to your name.
