Indebted people ‘should consider all types of financial products’

When it comes to purchasing new financial products, people should explore all avenues available to them, an industry expert has recommended – advice which could help those in debt improve their monetary situations.

A lot of banks often promote offers and deals that are not particularly beneficial to the customer and are designed to take as much money as possible from people, Ed Bowsher – head of consumer finance at lovemoney.com – has stressed.

Noting that many financial institutions are taking advantage of the downturn to charge rates that are far above the base rate of 0.5 per cent, Mr Bowsher said: “The financial crisis has to some extent meant that banks are not offering such a good service and people are right to trust them less.”

He added that consumers need to break away from long-term relationships with banks and compare products across the market.

Faith in the banking industry has fallen, according to a survey by Datamonitor, which found that 29 per cent had trust in the sector. However, the study also revealed that 59 per cent of global consumers still believed in their banks.

By Sarah Adie