Half of Britons Take Credit Out Without Knowing Interest Rates

A new study by the UK’s leading discount website has revealed that half of Britons that have taken out credit in the form of a loan, overdraft or credit card, did so without looking at the interest rate or APR that came with it.
By: Shannon Haigh
 
April 22, 2011 - PRLog -- With interest rates on loans and credit cards being an extremely important aspect to consider when borrowing money, the UK’s leading discount website has conducted a poll to look into Britons’ attitudes towards lending.

www.MyVoucherCodes.co.uk polled a sample of 1,201 people aged 18 and over from around the UK, each of whom had previously borrowed money in the form of a loan, overdraft or credit card. Respondents were subsequently asked questions surrounding their attitudes towards borrowing money and their knowledge of lending.

Respondents were initially asked the question, ‘In what form have you borrowed money in the past?’ and were given the opportunity to select more than one answer if they had used more than one form of lending in the past. 72% claimed to have borrowed through a credit card, 43% had taken out a loan and 39% claimed to have had an overdraft at some point in the past.

As all of the respondents had borrowed money in the past, each were subsequently asked whether or not they were aware of the interest rates or APR involved before taking the money. More than half, 52%, admitted that they ‘weren’t aware’ until after they had agreed to borrow the money.

Of these, two thirds, 65%, claimed to have felt ‘shocked’ by the interest rates or APR attached to the amount that they had borrowed, once they had found out what it was. Furthermore, a fifth of the total respondents, 21%, admitted that they ‘regretted’ borrowing money.

When asked, ‘Are you in debt at this moment in time?’ 78% of those polled answered ‘yes.’ These respondents were asked to rate how serious their debt was; selecting from either ‘not serious at all,’ ‘slightly serious,’ ‘serious’ and ‘very serious.’ A third of the respondents, 32%, said ‘serious.’

Mark Pearson, chairman of MyVoucherCodes.co.uk, commented on the findings:

“Interest rates and APR are something that any borrower should be fully aware of before signing up for anything. It’s up to the lender to tell you all about the terms and conditions of borrowing money from them, but as we are all probably aware, that’s often something they hide in the small print; and for good reason too!

“Some interest rates and APR are set extortionately high and it’s a shame that many people are tricked into a false sense of security. When you think you’re only borrowing a small amount, it can really add up, particularly if you don’t pay it back quickly. I’d advise that people ask as many questions as possible before borrowing, so they know everything they need to before signing anything. Borrowing doesn’t always have to be your only option; lowering the cost of living by taking advantage of discount codes and offers can be a good way to eliminate or reduce the need for taking out a loan, overdraft or credit card.”

LINK http://www.MyVoucherCodes.co.uk

ENDS  

For more information, contact Shannon Haigh of 10 Yetis Public Relations Agency on shannon@10yetis.co.uk or 01452 348211.


Editor’s Notes
Mark Pearson, chairman of MyVoucherCodes is a regular media contributor regarding online shopping and the credit crunch. At 30, his personal worth is more than £30 million. Mark was previously a trainee chef working for Gordon Ramsay at Claridges, London.

Mark appeared as a ‘Secret Millionaire’ in the series on Channel 4, in which he donated £115,000 of his own money to worthy causes.

MyVoucherCodes has had sales exceeding £481m in the last year

Consumer savings on online shopping via MyVoucherCodes.co.uk up from £28m in 2008 to £52m in 2009.

MyVoucherCodes is the UK’s most popular discount site.
End
Source:Shannon Haigh
Email:***@10yetis.co.uk
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Tags:Myvouchercodes Co Uk, Credit, Discount, Voucher Codes, Apr, Interest Rates, 10 Yetis, Pr Agency
Industry:Financial
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