The problems with the mortgage due and illiteracy Russians use banking services

Posted on Jun 22, 2012

At the meeting of the international “round table” on financial literacy, which was held yesterday in Moscow, it was noted that the Russian population is illiterate in the use of banking services. ”

According to the head of the National Fund for Financial Literacy, supported the Finance Academy under the Government of Irene Kuhn, only a third of Russians now have a bank account, 63.5% do not trust domestic credit institutions. 60% of citizens do not believe that the current insurance companies will exist in 20 years. Only 20% of Russians keep their savings in banks, 7% use plastic cards, 4% are taking personal loans and only 0.1% are involved in the mortgage. More than 40% of Russians do not use banking services, and those who are doing it are illiterate. These results not only hamper the development of the consumer market, but also have a negative impact on the Russian economy, wrote, “Rossiyskaya Gazeta”.

That explains illiteracy and problems with the mortgage, the director of one of the mortgage agencies Alexander Chernyak. As a rule, all the credit agreement, in particular in the field of mortgages, are in favor of the bank. Population does not know that it was necessary for the mandatory presence of a consultant contract with the bank. The increased interest of potential borrowers to the size of interest rates is also due illiteracy, people do not realize that even a two-fold decrease in interest rates would not block the rapid growth in property prices.

Flattered at a reduced rate in the first year of payments, people do not pay attention to the fact that the treaty provides for the indexing of this rate in the coming years, or bind it to some completely incomprehensible figure. As a result, solving immediate problems with housing, in the future they will not be able to pay the loan and will be forced to sell his apartment for early repayment.

Participants of the international “round table” came to the conclusion that “the bank educational program” for the citizens of Russia must be entered directly from school. Attending the meeting, president of the American Financial Services Association Livli Randy said that the United States at the time also encountered the same problem, and now theyre starting to grow its consumer banking services to kindergarten age.