UK's Hidden Debts Top £55bn

By Julia Kukiewicz Editor Wednesday, 28 April 2010

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MILLIONS of UK borrowers are hiding the true extent of their debts from their closest friends and families, according to research from the Post Office.

The survey found that almost a third of people (31%) hide the true extent of their debts from family members. If the 2,258 people questioned are representative of the rest of the country, Brits have a total of £55bn in hidden debts.

Mountains of Debt

The average person in the UK has £9,731.51 worth of non-mortgage debt but previous research has shown that most choose to make molehills out of their mountains of debt.

Most will only admit to owing half of their total borrowing if quizzed by a partner or family member.

Unsecured debts in the form of credit cards and personal loans are generally thought of as a purely personal matter but they can have a huge financial, as well as emotional, impact on those who are financially linked to a person whose borrowing has got out of control.

For example, credit card companies do not have to inform joint owners of an asset - such as a house - about debts run up by just one of the owners.

A Problem Shared...

Almost half (43%) of those who are economical with the truth about their financial situation suffer from sleepless nights and many also admitted turning to alcohol and comfort eating to allay the feelings of guilt caused by the hidden debts.

Donna Dawson, a psychologist specialising in personality, behaviour and relationships, commented on the news.

"Hiding the extent of debt from a partner or family member may give us a false illusion of control or independence, but the reality is that our mental and physical health suffers..." she said.

"Far better to operate as openly and honestly as possible from the start, and to take loved ones into your confidence at a much earlier stage - that way, debtors can get the help, support and advice that they really need.".