Bad advice bites at the Christmas table

Monday, 24 December 2007 12:00

Brits should keep money chats off the Christmas table - as one in five have been burnt by bad financial advice.

A poll by Birmingham Midshires reveals 16 per cent of people have been given bad advice from friends and family - with a quarter of 45 to 54-year-olds suffering at the hands of good-intentioned tips from those closest to them.

"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 Tim Hague, managing director of Birmingham Midshires mortgages.

Some 49 per cent of bad advice comes from savings and investments, while 19 per cent covered mortgages. Ten per cent of poor quality financial tips covers pensions.

Four-fifths of those facing poor advice suffered financially - with four per cent losing a major asset such as a car or house - and 17 per cent of people wasted time, but other costs for 12 per cent included a breakdown of a relationship.

Mr Hague advised people to seek help from an independent financial advisor (IFA).

"By visiting a qualified expert in financial products, such as an independent financial adviser, you will get impartial financial advice which will help you work your way through the maze of financial products available," he said.

"As a result, visiting a qualified advisor can save a lot of time in the long-run; and you can rest assured that you are making a financial decision which will be tailored to your own needs."

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