Why we should spend more time on our money
A spate of new surveys suggest that many consumers are not spending enough time on their financial choices. Whether it’s a mortgage, a pension or advice on money management, people are simply not giving them the time they deserve – especially when they’re struggling to save. But why is this, and what can we do about it?
The cost of stress
One survey by Casumo found that 60% of people are struggling to stay on top of everything going on their lives, so it should come as little surprise that we’re constantly on the lookout for ways to relax. The problem is that this is coming at the expense of bigger decisions.
Research data from credit check provider Noddle found that consumers spend an average of five days researching a holiday, but just 3.6 days choosing a mortgage. Worse still, 26% of people said they pick the first available mortgage – a decision that could cost up to £3,000 a year.
The price of priorities
Many of us are also failing to make the most of the money we have. Pensions are an excellent example of opportunities wasted. Industry experts Hargreaves Lansdown says just 5% of people with a ‘small’ pension pot (below £5000) bother choosing their provider, instead just settling for whomever their employer or bank offers.
Choosing the right provider can earn consumers an extra 4.75% in returns every year. For a £5,000 pension pot, that’s to £237.50 a year. And when savings are small, every penny really does count.
The value of advice
Of course, if you’re too overwhelmed with debt to think about savings, the first step should always be to seek help. Finding a way to manage your repayments will help you clear you debt and your mind. Unfortunately, the FCA says just 6% of UK adults sought such advice in the last 12 months.
Instead of seeking escape in a holiday, consulting an expert will simplify your decisions and help you make the most of your money. You can get free, independent advice from the Money Advice Service, and the Citizens Advice website gives a useful breakdown on finding the right adviser too.
Don’t delay your debts either. If you’ve received an enforcement notice from Dukes, contact our team today so we can set up a stress-free repayment plan.