Britons ‘fail to understand basic personal finance issues’

Consumers lack "everyday" knowledge about personal finance, a new study reveals.

According to a survey by Stroud & Swindon, about 60 per cent of respondents are aware that property buyers are responsible for paying stamp duty.

Sales and marketing director Paul Chafer said: "Understanding basic personal finances is key to consumers making the most of their income and ultimately avoiding significant debt problems."

He added that by not understanding areas such as Secured Loans and savings, those looking to buy a home could find themselves at "a significant disadvantage".

Meanwhile, one in four failed to realise that those earning £25,000 a year were taxed at 22 per cent.

However, 89 per cent of consumers correctly answered that the Bank of England sets interest rates, with 99 per cent understanding APR stands for annual percentage rate.

Last month, Angela Knight, chief executive of the British Bankers’ Association suggested that borrowers are set to receive improved financial advice and protection on areas such as personal loans and debt management.

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