Borrowers 'should be open about their debt'

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Borrowers 'should be open about their debt'

Tue 11th Nov 2008

A survey released today shows an alarming increase in the numbers of borrowers lying to their loved ones about the debts they owe - a move which experts say is counterproductive.

According to the study, conducted by insurance broker AXA, one in three people admitted to misleading their partner, friends or relatives about the amount of debt they have to deal with.

One woman confessed to having to start a second job because she could not bear to tell her husband how big her overdraft had become.

But Andrew Kinder, a psychologist, argues that such approaches are counterproductive.

He said: "Concealing expensive purchases or unwise investments from those closest to us is likely to exacerbate the problem.

"Unburdening your financial transgressions […] can be a crucial first step to taking better control."

Some couples have actually managed to reduce their debt by teaming up to tackle it together.

The BBC's Panorama recently interviewed Basil and Amanda Rakine, who managed to clear almost £100,000 in debt after finding mistakes in their credit agreements.

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