9 March 2005
The nation's financial competency level has been rated as below average by a new research into consumer habits.
Economic psychology professor Alan Lewis developed a test that assesses the user's basic economic knowledge, comprehension of financial information and psychological reactions towards money.
But the first set of results produced from this test make for slightly disconcerting reading about the UK's low competency levels in everyday money matters and decisions.
The study found that men in the UK had an average financial IQ of 60 whilst women fared slightly worse recording an average financial IQ of just 52.
Professor Alan Lewis admitted: "I was surprised by how low it is in the UK today.
"On this evidence I am worried that many people could be making the wrong financial decisions, especially when paying off loans appropriately."
The UK's understanding of personal loans is reportedly slightly better than the report's overall findings however, with an increasing number of consumers opting for secured loans as a solution to their financial situations.
Experts have continually recommended that rather than struggling with a number of debts, which could all accrue high levels of interest and charges, it can be wisest to consolidate them into a loan.
Use uSwitch.com's free and impartial loan comparison calculator to find the loan to suit you.
© 2008 Adfero Ltd
Content for the uSwitch.com market news service is provided by a third party, Adfero Ltd. Whilst uSwitch.com makes reasonable efforts to check the reliability of this content, uSwitch.com does not guarantee the accuracy thereof or endorse the views or opinions given by Adfero Ltd, unless expressly stated otherwise.