1 in 5 of us can’t Explain the Difference Between a Credit and Debit Card

 Friday, 26 July 2013

 Credit Cards,Prepaid News

1 in 5 of us can’t Explain the Difference Between a Credit and Debit Card

According to a recent survey carried out by leading voucher site MyVoucherCodes.co.uk, one in five of us can’t explain the difference between a credit, debit or prepaid card, giving us a very revealing look at the financial illiteracy of the nation.

The survey, which asked more than 1,600 UK adults, looked at a number of common financial terms to see what exactly we knew about the financial services we use.

62% of the 1,600 UK adults who responded to the survey didn’t know what ‘APR’ (Annual Percentage Rate) stood for or meant

58% still had no idea what ‘PPI’ (Payment Protection Insurance) was, despite the recent scandal surrounding it

71% were unsure what an ‘ISA’ (Individual Savings Account) was, and 11% claimed to not know what an ‘ATM’ (Automated Teller Machine) was

Interestingly, and somewhat foolishly, 68% didn’t believe that their lack of financial understanding has or would hinder them in the future

Financial illiteracy can be excused somewhat, as it can often be difficult for people to get their heads around the vast array of terms and acronyms that are thrown, and yes, banks are certainly guilty on occasion of not explaining the services and solutions they offer to consumers adequately, but not knowing the difference between a credit and debit card really is inexcusable, and could easily lead to many of us finding ourselves in financial trouble.

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