Tagged in: Professional Financial Advice

Consumers Shun Professional Financial Advice

New research conducted by insurance giant Aviva, has shown that around 80% of Britons would get financial advice from their family or friends (or even the internet) instead of going to an independent financial advisor (IFA).

The study showed that the older that the consumers become, the more likely they are to seek professional advice. It found that around 75% of 18-24 years olds would turn to friends and family first, compared to around a quarter of over 65’s.

The study suggested that the reason for this low number of people turning to professional advisors is lack of knowledge and understanding.  Most consumers surveyed correctly knew that an IFA would be able to help them with information on savings, mortgages, income, tax and other insurances. Whereas only a meagre 25% knew that they could help with debt management. The study did show however, that 95% of people who actually sought professional advice felt that they positively benefited from the experience.

In many cases, people will look to short-term loans, like payday loans to help with financial difficulties. For example if they need help to cover urgent expenses. Whilst payday loans are a viable option to help with emergency finances, they should not be used to help with long term debts. They should also not be used as a method to cover other loans or debts that you might have. If this is the case, they we would always recommend that you seek help from a finance professional.