Getting proper financial advice could well help consumers manage their money effectively, a new study suggests.

In research carried out by Birmingham Midshires, some 16 per cent of Britons said they have received bad financial advice from a family member or loved one. However, consequent problems in managing money could be even more pronounced for the 23 per cent of people between the ages of 45 and 54 who have had such help. On the other hand, just one in ten 18 to 24-year-olds state that they have had poor guidance. And as a result of getting adequate financial guidance, consumers may well find that they are able to select cheap loans and other competitively-priced monetary products more effectively.

Findings from the firm also indicated that more than a third (37 per cent) of people have received poor advice in relation to investments, while 19 per cent have taken onboard bad guidance about mortgages. Meanwhile, pensions made up some ten per cent of the flawed assistance given by loved ones. Birmingham Midshires also showed that insurance and savings account for 13 and 12 per cent of substandard tips given.

As a result of getting bad money management advice, the majority (81 per cent) of Britons have suffered financially. However, the firm revealed that such guidance has also had a wider impact. Just under a fifth (17 per cent) of those surveyed state they have wasted a lot of time in the process, while 12 per cent believe that the relationship they had with the person offering advice had suffered. Meanwhile, some four per cent have lost an asset of considerable value such as a car or house. A major loss could well cause many people to struggle to manage various demands on their spending such as loans, credit cards, mortgages and utility bills.

Commenting on the findings, Tim Hague, managing director for Birmingham Midshires, said: “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.”

Mr Hague added: “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. 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.”

In getting sufficient monetary advice from a professional, consumers could find that they are able to personal loans and credit cards prevent them from getting such a product. However, in seeking out good guidance many Britons may be able to search effectively for cheap loans for consolidation purposes and so reduce pressure on their expenditure.

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