FINANCIAL ILLITERACY COSTS US DEAR

British consumers a paying a high price for being ill-informed and unconfident when it comes to making crucial decisions about their personal finances, says a new report from the National Association of Citizens Advice Bureaux.

Estimates of the collective costs to consumers is as much as

£4 billion paid in unnecessary interest on consumer debt

£4.5 billion paid in inappropriate debt consolidation borrowing

£3 billion in unclaimed means tested benefits

Gary Martin, chair of the London Region CAB Social Policy group said of the report “This highlights the problems caused by people not having enough confidence to say no to pushy sales staff”

On top of this a large number of people find themselves excluded from the mainstream financial sector because banks and building societies often refuse them accounts because they are in receipt of benefits.

Those on benefits should also be aware of the Social Fund, a Governemnt pot of money for those on benefits that provides interest free loans for replacement household items or a grant for those considered priority, such as parents with children or the disabled.

The Citizens Advice Bureau is working to end these kind of problems that can lead to the public becoming prey to loan sharks and a never ending cycle of debt.

The introduction of a credit union in Waltham Forest should help with this, he said.

Examples of extortionate credit charges should be reported to Trading Standards.

SEE TEN TOP TIPS, TO FOLLOW

Also consumer advice websites sheet to follow