Despite reports of global financial turbulence dominating the headlines, many Brits are failing to take personal money matters into their own hands.

Such is the claim of Norwich Union, which has released statistics showing that 72 per cent of respondents to a recent study were unsure of what kind of mortgage they were on. The group pointed out that while many Brits have switched on to researching financial services online, consumers have little understanding of what they are getting for their money when it comes to mortgages and insurance products. And with 53 pence in every pound being ploughed into such services, Norwich Union claimed that many Britons are “budgeting blind” in the current economic storm.

Indeed, it noted that more than two-thirds (67 per cent) of those questioned do not know how much they are paying in mortgage repayments, while 78 per cent were unsure of the interest owed on this kind of loan arrangement. Meanwhile, almost three-fifths (59 per cent) said they were unclear on the basic tenets of their contents insurance policy, while nine per cent said they were unsure of how much they were paying in utility bills and council tax.

As a result of failing to budget for monthly outgoings, people may find themselves unable to cover costs such as mortgages, credit cards or personal loan repayments, thereby putting their financial security at risk.

Commenting on the statistics, Norwich Union urged consumers to take more time to look at the terms of the financial products they take out.

Meanwhile, independent financial analyst Alvin Hall warned: “In difficult economic times like today, its crucial that each of us understands exactly where every penny of our pound is going. Budgeting blindly or with your head buried in the sand is a high-risk strategy. When youre embarking on financial commitments like insurance and mortgages its important to be aware of whats going on in the market and what other products are on offer.”

He went on to urge consumers to make sure they fully understood a financial product before they agreed to purchase it.

“By taking some time to diligently read and understand the information about different products – and by asking questions that help clarify our understanding – can empower ourselves to make the right decisions,” he insisted.

For consumers who have found their finances unravelling in the wake of rising food and energy prices, taking out a debt consolidation loan may prove an effective way to get their monthly outgoings back on track.

In terms of getting to grips with the workings of financial products, Norwich Union warned that the rise of the internet as a preferred information resource may have resulted in people losing the depth of understanding that may be offered by a specialist broker or independent adviser. In order to remedy this, Steve Genders, head of web services at the group, said that suppliers of services such as loans and insurance need to make sure they provide customers with quality as well as quantity.

The news follows a report published earlier this year by M&S Money which showed that many more holidaymakers are clicking their way to a foreign break without the assistance of a travel agent as online travel services proliferate.

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