A total of 9 out of every 10 of adults think that they are proficient at handling their own finances. While some might consider this confidence to be admirable, a new study carried out by a major card provider suggests otherwise.
The research reveals that when it comes to the true state of their finances, many people aren't really putting in the effort required.
Other financially surprising statistics are that half of card holders haven't checked their monthly balance or examined the payments that they had made at all over the past 12 months. This wilful ignorance increases when debt becomes involved, with 86% of those with personal loans and 82% of those with overdrafts showing avoidance behaviour.
Many consumers also seem unaware of the importance of their credit rating.
The research showed that more than half of UK borrowers had never tried to see their credit rating, despite it being possible to do so for free and the fact that it's very important when it comes to credit card comparison.
Some 21% of people fail to understand that missing a credit card repayment can have an adverse effect on their credit rating. An even greater number (25%) choose to believe that ignoring a County Court Judgement will also have no effect on their credit rating.
This would seem to suggest that credit card holders are not actually very savvy when it comes to their finances.
The credit card provider suggested that it's not uncommon for people to tell themselves that they are in a fairly healthy financial shape even though in reality it's not the case.
Financial poor health only tends to rear its ugly head then further problems occur, the provider suggested.
Cardholder's negative behaviour patterns are targeted by taking in some myth-busting factual information, taking advantage of free money management tools and learn more about certain credit cards that could be useful for building a credit score.
This card and other bad credit rating credit cards rewards customers who sensibly manage their accounts.
They are aimed at those who have had some experience of managing credit but who might have missed some past payments and damaged their credit rating and ability to get a card.
When it comes to their understanding of financial situations credit card holders could also be well advised to stick to the less complex offers available from providers.
Trying to do too much on one credit card at a time could be a financial disaster so making sure that as a consumer you are well prepared for how you should be using a financial product really is vital. This is also true in unusual situations for example in the case of use abroad credit cards.