Britons urged to check small print on personal finance options
People must be fully aware of what they are signing up for, it has been said.
Anyone considering taking out a personal finance option such as a zero per cent instead of using a such as an to help them with their outgoings must make sure they are fully aware of the small print attached to such deals.
That is according to Andrew Hagger,
spokesman for online resource Moneynet, who insisted that consumers need to conduct some market research prior to putting pen to paper.
Mr Hagger explained that people can sometimes be caught out by the finer details of these packages further down the line as they have failed to properly scrutinise the intricacies of credit options that are applicable after the introductory period on them.
The expert stated that not doing research before signing up can have dire monetary consequences in the long term.
Failing to stick to the terms and conditions can invalidate your contract and result in the special feature offered on the product being reduced or cut completely, leaving you with potential interest charges that may exceed any bonus savings offered.
"With the interest free deals people tend to try and find the longest deal they can, so it can be 17, 18 or 20 months perhaps and they don't really pay attention to when it finishes," he added.
Research published by My Voucher Codes recently (April 20th) showed that some 52 per cent of all Britons who borrowed money in the last year were not aware of the interest rate on these products prior to committing.
Mr Hagger said this is a dangerous way to manage personal finances, as it is likely to result in the accumulation of debt and therefore makes it tough for individuals to mange their income and outgoings.
However, a growing number of people may not need to take out credit in the near future, if comments made by one expert recently are anything to go by.
Jasmine Birtles, founder of Money Magpie, feels there is now a more noteworthy appetite to save among Britons in the aftermath of the recession, particularly for younger members of the population.
