Worry for debt future as "finance literacy" worsens

20 August 2008

Abbey has said UK adults` knowledge of personal finance matters is getting worse.

This summer a group of adults sat a GCSE-level personal finance test set by the bank, with the results suggesting one in seven British people would not achieve a C grade (over 40 per cent).

Last year`s results for the same exercise found one in ten would not get a C in finance, indicating a decline in knowledge for 1.2 million people.

Banking director Steve Shore said the findings were "quite worrying" since the credit crunch has been the hot topic for the past year.

The exam results revealed 88 per cent of people were not aware they had six weeks to repay credit card debts before interest is accrued, while a quarter (25 per cent) did not know that if a secured loan is not repaid, their home may be sold to cover the debt.

In other finance news, drivers may be pushing up their insurance premiums by drink-driving, uSwitch has said, following figures released by the Department for Transport showing a two per cent rise in accidents cause by drink-driving.

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