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Dangerous Temptation of Price Leaves Consumers in Fear

With competition rife on the high street, everyone claims they have the best deal when it comes to mortgages, pensions or investments – but a new survey has revealed a quarter of us are worried we’ll
Finance - 1 February 2012   Download IconContent available for download:  
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For every 7 British people confident with the country’s financial services, there are 93 who aren’t – with a new survey also revealing a quarter of us are worried about purchasing a mortgage, pension or investment product that’s not right for us.

With endless financial matters to take control of and increased worries of choosing the wrong product – it’s emerged that our habits of how we shop have adapted in recent years. But the study’s revealed half of people do not necessarily understand the features of products they own.

In fact, the majority are turning to price comparison websites – now the number one aid for consumers when making a decision. However, industry leaders have voiced concerns about this shift in behaviour which has left nearly 70% of people saying that cost is very important to their financial decision making; a priority which can often be dangerous and counterproductive for consumers, who risk buying the wrong product and paying extra for the damage of their mistake later.

. Introduction:

New research has revealed a shift in consumer shopping patterns when looking for financial products – with price being a key factor for many when it comes to making a decision. Despite a quarter of us admitting we fear purchasing a mortgage or pension which isn’t right for us, the majority are now turning to price comparison websites when we want to know the options out there. Experts warn that by largely focusing on price we are at risk of side-lining the actual benefits of a product, and potentially paying extra for the damage of this mistake later on.

But what real dangers are associated with making money our main priority - as more and more of us are turning to price comparison sites for valid evaluations, how do we know what product will suit us best? And are our bank balances forcing us to settle for the cheapest deal before we know all the facts?

Joining us to discuss this further is Ben Heffer, an Insight Analyst from the independent financial research company, Defaqto.

. Suggested Questions:

What does research reveal about the financial outlook in our area?

Why are so many people worried about falling victim to incorrectly advertised financial products?

What kind of products are causing us confusion?

What is the main thing that consumers are focusing on when comparing financial products?

What should consumers be looking out for when making comparisons?

Where can our listeners go for more information?