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Bad money advice 'rife'

24/12/2007

Twenty per cent of Britons have found themselves worse off after seeking financial advice from family and friends, a survey has said.

A new poll claims that this Christmas millions of UK residents will suffer "financially and emotionally" after being given bad advice.

Birmingham Midshires, which conducted the research, revealed that four out of five people lose money directly as a result of bad advice.

The survey found that people aged 45 to 54 are the most likely to receive poor counsel over money matters.

But the mortgage provider says that only one in ten 18 to 24-year-olds suffers from bad advice from friends or family.

The most common subject for bad advice was found to be investments (37 per cent), followed by mortgages (19 per cent).

"While it may appear more accessible and less time-consuming to act on the recommendations of friends and family when it comes to financial advice, rather than to seek qualified and professional advice, our study demonstrates that it really does pay to visit an expert," said Birmingham Midshires' Tim Hague.

"Almost one in five people questioned in our study have suffered in some way as a result of a bad piece of advice."

As well as the financial cost of bad guidance, the survey found that one in five wasted time and 12 per cent saw their relationship with the source of the poor advice worsen.