Problem debtors hide borrowing says report

Seven out of ten people with serious debt difficulties resort to subterfuge rather than inform their partners says research by advisor Debt Free Direct.

Problem debtors were more likely to confide in family and friends, but one person in eight chooses to keep the problem to themselves until it is too large to hide.

“People hide debts for many reasons, but often it’s to try to avoid facing up to the realities of their situation,” said Andrew Redmond, chief executive of Debt Free Direct.

“In our experience, if couples openly share details of their finances then they are more likely to seek help earlier and so avoid possible bankruptcy.”

Debt Free Direct has urged people to be open about any financial problems that they may be in and warned that hiding the truth from a partner may not protect them.

Both unsecured and homeowner loan borrowing can affect any finances held in joint names.

“Many people don’t realise that debts in their sole name can affect their partner,” said Mr Redmond.

“A property owned by a bankrupt will probably be sold to pay off creditors, meaning the loss of the family home.

“Partners also share liability for any debts in joint names, such as credit agreements or shared overdrafts even if they were unaware of the scale of the problem,” he explained.

© Adfero Ltd

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