CREDIT CARDS

Brits failing to switch financial products

Despite the tough economic climate, research has found that many Brits are not saving money by switching financial products.

Research has found that 26% of people have not switched to a different provider, and therefore saved money, for any of the 20 most common financial products.

Research carried out by GoCompare.com has found that over 12 million people have not bothered to ‘switch and save’ in the past 12 months on products like car insurance, mortgages, home insurance or credit cards.

It was found that 22% of people have never switched their bank account, 12% have never switched credit card, and 13% have never switched home insurance provider.

Figures released by the Bank of England show that credit card debt in October this year stood at £56.5 billion, with the average interest charged being 16.73%. But by switching credit cards, people can greatly reduce the interest they pay.

“Insurers, banks, energy providers and lenders do not customarily reward loyal customers with the best premiums, interest rates or tariffs, so it's up to the consumer to spend a little time seeking out the best deals,” said John Miles, business development director at Gocompare.com.

“Nearly two thirds of Brits are expecting 2012 to be a very difficult year for their finances, but our research shows that millions of consumers could be missing out on hundreds of pounds worth of savings by not reviewing their finances and switching to better deals on some of the most common financial products.

There was however some positive aspects of the research, with many Brits taking the initiative to try and save money, especially when it comes to insurance.

It was found that over two thirds of people have saved money by switching their car insurance provider in the last 12 months, and 27% have switched home insurance provider.

Tags: credit card debt, switch credit card, switch current accounts, switching financial products