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Nearly A Quarter Do Not Know How Much They Owe

Tuesday 02 September 2003

A significant number of people who possess loans and credit do not know how much they owe, according to a recent survey by MORI Social Research Institute on behalf of Citizens Advice.

Possession of loans and credits appears to be the norm, with three-quarters (74%) of people having at least one. However, 23% of people who have loans and credit do not know how much they owe and this increases significantly among students, who are also most likely to be unaware of their own financial situation generally.

Technical details

MORI interviewed a representative quota sample of 1,986 adults aged 15+ across Great Britain. Interviews were conducted face-to-face, in-home between 3-9 July 2003. Data are weighted to the known national population profile.

Topline Results

Q1 If you were ever in financial difficulties in the future, which of the following, if any, would you go to for advice and/or information?

Base: All (1,986)

	%
Family/friends	46
Bank/Building Society advisor	42
Citizens Advice Bureau	34
Independent Financial Advisor	24
Free advice agency	13
Accountant	12
Internet	8
Credit reference agency/credit report	2
Free charging debt management agency	2
Credit repair agency	1
None	3
Other	1
Refused	1
Don't know	2

Q2 Looking at this card, which ONE of the following best describes how you and your household are managing at present?

Base: All (1,986)

	%
I am/we are keeping up with our bills and credit commitments without any difficulties	56
I am/we are keeping up with all our bills/credit commitments, but struggle to do so from time to time.	26
I am/we are keeping up with all our bills/credit commitments but it is a constant struggle	8
I am/ we are falling behind with some of our bills or credit commitments	2
I am/we are having real financial problems and have fallen behind with many bills or credit commitments.	1
Other	1
Refused	1
Don't know	4

Q3 Looking at this card, which, of the following, if any do you currently have more of?

Base: All (1,986)

	%
Credit card	54
Bank or Building society overdraft facility	42
Store-card	24
Personal loan	16
Mail order/catalogue loan	11
Hire purchase agreement	9
Secured loan/re-mortgage	9
None of these	26
Refused	2
Don't Know	*

Q4 Looking at this next card, how often, if at all, would you say you use these loans and credits you have mentioned for…

Base: respondents who have one or more credit cards / loans

	a. Paying regular household bills?	b. Making ends meet till the next pay day, benefit or pension payment?
Base:	(1,333)	(1,333)
	%	%
Always	7	4
Very often	5	5
Fairly often	10	11
Not very often	18	23
Never	59	56
Refused	*	*
Don't know	1	1

Q5 Please read out the letter, which applies, to the TOTAL number of credit and store cards you currently have.

Base: Respondents who have more than one credit/store cards (1,100)

	%
One	38
Two	25
Three	16
Four	9
Five	5
Six	4
Seven	*
Eight	1
Nine or more	1
Refused	1
Don't know	1

Q6 Looking at this card, how much, if anything, do you usually pay off your TOTAL credit and store card balances on average each month?

Base: Respondents who have more than one credit/store cards (1,100)

	%
Less than minimum payment	2
minimum payment	10
More than the minimum payment but less than the full balance	29
Full balance	49
I have no outstanding balance on my credit/ store cards	9
Refused	1
Don't know	1

Q7 Looking at this card, how often, if at all, have you been overdrawn on your current bank/building society account in the past year?

Base: Respondents who have an overdraft facility (787)

	%
Never	36
Once or twice a year	29
Once every two or three months	15
Every month	13
Always overdrawn (that is current account never in credit)	6
Refused	1
Don't know	1

Q8 Thinking back to the credits and loans you said you had — do you know how much, if anything, you owe in TOTAL on all these credit commitments and loans? These might include credit cards, store cards, hire purchase agreements, personal loans, re-mortgaging your home (equity release) or secured loans — but does not include any current or main mortgage or a re-mortgage if you took it out simply change to a new rate.

Base: Respondents who have had any credits/loans (1,389)

	%
Yes	51
No	23
Don't owe anything	23
Refused	2

Q9 Looking at this card, could you please read out the letter which best corresponds to the total amount you currently owe.

Base: Respondents who know credit or loan amount (718)

	%
Under £1000	44
£1000-£1,999	12
£2,000-£2,999	7
£3,000-£3,999	6
£4,000-£4,999	5
£5,000-£7,499	4
£7,500-£9,999	3
£10,000-£14,999	6
£15,000-£19,999	3
£20,000 or more	2
Refused	5
Don't know	*

Q10 Have you taken on additional credit within the last 12 months? Again, this does not include any current main mortgage or a re-mortgage if you took it our simply to change to a new rate.

Base: All (1,986)