25 May 2016

Do you always know exactly where your money is going?

Have you ever signed on the dotted line without reading the paperwork? Well you’re not alone, our recent research shows that two thirds of us admit to not always reading, or never having read a contract before signing.

And it reveals that credit card is the most likely financial product to be taken out without checking the terms and conditions, with one fifth of customers admitting to not fully understanding the fees and charges associated with a credit card.

John Crossley, Nationwide’s Head of Credit Cards and Personal Loans, said: “The research shows that many of us fail to take the time to understand our action before we make commitments. It’s one thing to incinerate a microwave meal by ignoring the instructions, quite another to be blindsided by a fee or penalty. We would always urge people to check any paperwork carefully or ask questions if at all unsure.”

Rob James, a specialist in sleight of hand and misdirection, took to the streets to prove how things may not always be as they appear.

Do you always know exactly where your money is going?

Play video - Do you always know exactly where your money is going?man performing magic trick with credit card

Rob: Hi my name is Rob James, I'm a specialist in sleight of hand and misdirection.

Rob: Did you see where it went?

Public 1: No.

Rob: No? It's on your left shoulder.

One method I use is that of substitution, making people believe they are getting one thing, when they are actually getting the opposite.

Most of what we are doing today involves money. Whether on the street, or on a larger scale, this sort of thing is happening on a daily basis. So you should always be careful what you're doing with your finances.

Public 2: I have no idea how like he made the 50 pence thing just like disappear out of my hand.

Public 1: Money is not a joke, it's something you have to take seriously. You need to know where your money is going and who you are trusting your money with.

Rob: The one thing all of us are worried about losing is our money. And if an offer sounds too good to be true, that's almost certainly the case.

We are showing how one thing can lead into and reflect something else. This is what I call substitution. And unfortunately, many of us are victims of substitution these days.

Public 3: Can't be too careful these days really, so it's definitely help me see that.

Public 4: It really does make me think I need to be a lot more careful with my money.

Rob: Do you have your credit or debit card with you?

Public 5: I've got a debit card, yes.

Rob: Do you have a contactless card?

Public 6: No.

Rob: I'm going to turn it into a contactless card for you.

So many credit card offers sound appealing, but if you aren't aware of the terms and conditions, the odds are stacked against you, like in a game of cards.

Public 6: What?

Public 5: Where's my card gone?

Public 7: Today I was the joker, but from now on I'm going to be a lot more careful about what I do with my money.

Public 5: He managed to change my debit card into a joker. Which is rather useless in a cash machine.

Rob: I hope after today's exercise the people that I've met will think a little more carefully about how they handle their finances.

At Nationwide, we strive to make our credit cards simple and easy to understand, so that you’re completely aware of what you’re signing up to before it’s too late.

Find out more about the credit cards we offer

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