Are Holidays More Important Than Your Finances?

People in the UK spend almost twice as long planning for a holiday than they do arranging a mortgage!

People in the UK spend almost twice as long planning for a holiday than they do arranging a mortgage! That's the alarming findings of a recent survey carried out by the Fool. It's also a worrying statistic that while a third (36%) of people spend ten hours or more choosing the perfect holiday only a fifth (21%) are prepared to commit that much time to choosing a home loan. The Council of Mortgage Lenders (CML) claims 1.4 million homeowners have a fixed rate mortgage that's due to come to an end during 2008. That means potentially 1.4 million mortgages which could be renewed to enable borrowers to avoid their lenders' more costly standard variable rate home loans. But with many people more interested in their annual holiday than re-mortgaging, you may be missing out on the chance of getting a good deal which could needlessly waste thousands of pounds each year. And mortgages aren't the only thing we don't fully research. Holidays are a higher priority than just about every other financial product. We don't give enough of our time - precious as it may be - to credit cards, loans or pensions either. The table below shows exactly how many hours we are prepared to spend on each one: Holidays Versus Financial Planning Category Holiday Mortgage Credit Card Personal Loan Average time spent researching 9hrs 14mins 5hrs 8mins 3hrs 21mins 3hrs 8mins Brits that spend 10+ hrs choosing... 36% 21% 11% 11% Category Insurance Policy Bank Account Pension Utility Bills Average time spent researching 4hrs 48mins 4hrs 40mins 4hrs 4mins 3hrs 18mins Brits that spend 10+ hrs choosing... 15% 15% 15% 9% So, holidays are obviously way out in front, but why are they top of our agenda when financial decisions are far more crucial? Well, 23% of people admit they don't spend enough time exploring the options open to them, with boredom and confusion cited as the primary reasons why. Worse still, 59% of those over the age of 55 say they are bewildered by finance in general. Indeed, almost half (45%) of all people feel overwhelmed by financial decisions. While one fifth (19%) get more enjoyment from shopping around for holidays and luxury items than they do from buying financial products. Meanwhile almost four out of ten people (38%) confess to always settling for the easy option - such as staying with their existing bank or lender - rather than looking for a better alternative. And 41% of people claim they simply don't have enough time to devote to financial decision-making. I won't try to convince you that re-mortgaging, for example, is as exciting as booking a holiday but the repercussions of not planning your finances properly could be disastrous. Imagine wasting £3,000* a year because you didn't re-mortgage when your fixed-rate deal came to an end. but this is a stark reality for many. At The Fool we try to clear the haze which surrounds financial planning. If you're a beginner and you don't know where to start, try reading some of the many guides kept in our product centres. I've added some links below to help you to do that quickly. OK, dealing with your finances may not be the most thrilling way to spend your time but just think of it this way - that £3,000 you just saved by re-mortgaging will be a welcome boost to your dream holiday fund! *= Based on switching a 25-year £200,000 mortgage at an APR of 7.5% to a 2-year fixed-rate deal at 4.99%. Total savings over two year (before arrangement fees) is £6,000. More: Visit our product centres and get a head start: Mortgages | Loans |Credit Cards | Savings |Insurance |Pensions | Gas and Electricity.