Surveys have shown that since 2006 the financial literacy of Czechs has improved only minimally. Let’s start with a few numbers and it won’t be a nice reading:
- 88% of people make a loan online in 5 minutes and 29 seconds.
- It takes 20 minutes to study the contract.
- 6% of women and 8% of men read fairly all the documents for their loan.
- 75% of Czechs have already borrowed money.
- 50% of borrowers do not compare offers from different providers.
Does it also seem alarming to you? Figures come from Honest Lender statistics and Good Lender Building Society Survey. People could save themselves a lot of trouble by lending at least 15 minutes more.
Speed comes first
More than half of the people take out the loan because of unexpected expenses, and 39% is the most important factor in choosing a provider. It is understandable – if the stove breaks down, you want to have a new home as soon as possible and a non-bank loan is a quick helper.
But a non -bank loan is not a bread purchase and therefore deserves more attention. According to available information, people most often sin that they borrow small amounts. However, even under unfavorable conditions, they can become more expensive.
Not even unexpected expenses can be excused for not reading the conditions. Spend a loan instead of five minutes and you may find that a non-bank loan is more convenient elsewhere. It is not in vain that time is money.
Do not focus only on interest
If people focus on the study of conditions, they are usually interested only in interest. But that’s not enough. It is very important to read the full terms, as there may be a variety of penalties, fees and other unpleasant surprises. It may not be true that a non-bank loan at first sight seems advantageous.
Most secure providers have their terms online, so you can easily study and compare them with others.
With Financial Manager you always know where you are
The lack of interest in information during negotiation is closely linked to another problem. The survey showed that only a few people remember the conditions under which they borrowed money. For example, at most 7% of people knew the APRC rate.
This confirms that Czechs are rather passive in relation to their loans and 27% of them do not want to solve the situation. This is a pity, as they may have missed the opportunity of advantageous refinancing.
However, if you use Finance Manager, your loan and card information is available 24 hours a day. This allows you to find the data you need at any time and compare it to other offers.