50 per cent of young Scots unsure if high interest on loans is positive

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20th January 2015 14:50 - Financial Services

A poll, commissioned by the Daily Record, has found that approximately 50 per cent of young people living in Scotland were unsure whether a high interest rate on a loan was better than a lower interest rate.

The study, which polled 1,000 residents of Scotland, also discovered that 45 per cent of the respondents were unable to work out if one would have to pay more with an APR of 8 per cent, as opposed to a loan with an APR of 21 per cent.

Building on this statistic, 40 per cent of the respondents, aged between 16 and 34, admitted that they do not check what the APR is on a credit card or loan, before going through the application process, as opposed to 21 per cent of the respondents aged 45 to 54.

Of the sample of 1,000 people, some 25 per cent claimed that they were not sure where to go for help with their money worries. However, the kind of help and advice needed by individuals, depended of gender and age.

When looking at who had regularly put money into saving accounts, 34 per cent of women claimed that they had saved some money every month, a lower figure than the 42 per cent of men who had done the same.

A further 28 per cent also highlighted that they had no money saved in the bank, for a rainy day.

Of the sample aged 16 to 24, approximately 25 per cent admitted that they would consider using a payday lender, a much lower figure than the 2 per cent of 55 to 64 year olds, who said they’d approach a payday lender as well.

The survey also outlined that nearly 50 per cent of the Scottish people polled would not consider one to be in debt, should they be paying off a loan for a house or car.

Similarly, 48 per cent do not think that struggling to pay bills and repayments constitutes as being in debt.

Over 40 per cent of the respondents claimed to not have a monthly budget in place. This figure climbed to 52 per cent when the respondents over 65 were questioned.

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