Britons In 'Loans Debt Denial'

Experian said today that a large majority of people are not facing up to their personal loans debt.

According to the firm's subscription service, CreditExpert.co.uk, only one in four Britons can say exactly how much they have left to pay on their loans: a trend which might see many get in worse unsecured debt than they would if they kept a more careful grip on their finances.

More generally, 20 per cent told Experian that they planned their budgets only once every six months or less. Around one in ten also confessed to having "no idea" about how bad their debts were.

Basic gaps in financial knowledge were also common, with over one third (36 per cent) saying that they did not know what an APR was.

Jim Hodgkins, managing director of CreditExpert.co.uk, commented: "This research provides a worrying insight into people's perceptions of their finances. It is clear that many of us are not as familiar with our finances as we believe. This could lead to disappointment when people are planning to get a loan or change existing credit arrangements."

He added: "It's alarming to see that while almost the entire UK population think they are on top of their finances, many aren't."

Research published last year by charity Credit Action put the total level of UK personal debt at £1.4 trillion.