Britons are hiding a collective £13bn worth of secret personal debt from their friends, families and partners, according to research from GoCompare Money.
The study found that 40% of UK adults had some form of personal debt (excluding mortgages), owing £6,131, on average.
However, despite 29% of those with debt being concerned about the amount they owe, one in 10 admit to hiding the problem from their loved ones, including their partners – with 65% keeping their debt secret for a year or more.
On top of hiding their finances, 14% of people said that they didn’t know how they would be able to repay the money they owe.
While some people said they would consider asking family for financial help or talking to a debt charity, such as Stepchange, others would consider taking out a consolidation loan (13%) or even a payday loan (6%) to pay off their existing balances.
Georgie Frost, consumer advocate at GoCompare said: “Hiding debt from a loved one should be a warning sign that you’re not managing it properly and you might want to seek help. The first step is to admit it to yourself and then to open up to others. Burying your head in the sand, or hiding it from your loved ones, is likely only going to make your situation worse and the stress of worrying could lead you to make unwise financial decisions.
“The fear of being judged or of people’s reactions to your situation is understandable but the reality is that many of us have some form of personal debt that we are concerned about. The only way we can tackle this issue as a society is to drop the stiff upper lip mentality and talk about it, and most importantly reach out when we need help.
“Debt isn’t necessarily a bad thing, if it’s managed correctly. For instance, taking out a low interest loan to improve your home and add value to the property, or to buy a car that will allow you to get a new job and earn more money are good examples of how to use credit correctly. Likewise, breaking up a large payment, such as a car insurance premium, by using a 0% purchase credit card can help you manage your finances in a healthy way.
“However, issues arise when people rely on credit to live outside of their means, borrow money that they don’t know how to pay back, or rely on credit as their only form of emergency fund.”