Financial phrases which leave Brits feeling most confused are ‘personal loan rate’, ‘offshoring’ and ‘equities’, a study has found

A poll of 2,000 adults found that 68% are overwhelmed by the amount of jargon used when it comes to money and savings, and a third don’t know what a credit score is.
And only half know what APR (annual percentage rate) means while only one in five are confident they could explain what an unsecured loan is.
Another in six have even been caught using financial jargon in a social situation without having any idea what it meant.
But the study found that one in five have been put off applying for a personal loan because of the confusing and overwhelming terminology.
Although 59% have already applied for a personal loan, borrowing an average of £8,000.
Ed Dutton, director of financial services products at Post Office, who commissioned the research, said: ‘We believe it is important to speak to customers using plain language so that they feel confident in their decisions when making decisions. they borrow.

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“Personal loans can be used for a variety of reasons such as buying a car or expanding a house and offer people a different option than other products such as credit cards.
“It’s always worth taking the time to read up on any financial product you’re considering and taking the time to ask for help on the jargon if something isn’t clear.”
It also emerged that more than half of Britons have no idea what their credit score is but know what it means, while 66% have no idea what the Bank of England’s interest rate is.
Worryingly, four in ten admit that they sometimes feel confused when talking to financial experts, and one in five do not question the meaning or jargon in such a situation.
A third of them keep quiet because they don’t want to show their ignorance while 22% would just sign on the dotted line and hope for the best.
But it has seen almost a quarter find themselves in dire straits financially because they did not question the wording of the documents.
Ed Dutton added: “The financial world is full of jargon and phrases that can be confusing.
“The data suggests that many adults don’t feel comfortable challenging the actual meaning of these phrases, with some willing to sign off on something they don’t necessarily understand.
“It’s also surprising that many don’t feel confident about the bank rate, which can have a significant effect on loan and mortgage interest rates.
“It’s important that people feel fully informed when making big financial decisions.
“Do your homework and use a loan checker to determine eligibility [https://www.postoffice.co.uk/personal-loans] can help you understand if a personal loan is the right product for your needs.
The survey, conducted via OnePoll, also looked at the main reasons Britons take out loans, with buying a car, home renovations, debt consolidation, holidays and covering medical bills, most popular uses.
People aged 18 to 25 are the most likely to use a personal loan – accounting for 40% of Britons to take them out – for plastic surgery, pets and student debt.
While 35 to 44 year olds had the highest likelihood of using a personal loan to pay for a wedding and debt consolidation at 27% and 25% respectively.
TOP 10 FINANCIAL TERMS THE BRITISH DON’T UNDERSTAND
1. AMC (Asset Management Company)
2. VaR (Value at Risk)
3. ISA Unsecured Loan
4. IFA (Independent Financial Advisors)
5. ARE (annual equivalent rate)
6. Asset Management
7. Relocation
8. Shares
9. Consolidation Loans
10. FSA (Financial Services Authority)
PERSONAL LOANS BRITISH ARE MOST LIKELY TO TAKE
1. Car loan
2. Home Improvement Loan
3. Debt consolidation loan
4. Vacation loan
5. Medical expense loan

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