According to research released by the Debt Advisory Centre earlier this week, an estimated 11 million people are not telling their partners or families the truth about the level of debt they owe.
Of the 11 million estimated to be hiding debts, one in ten owes more than £10,000 and around a third of those between the ages of 25 to 44 hold some form of hidden debt. London was found to be the worst area for ‘closet debt’, with nearly a third hiding the true scale of their borrowing.
Hidden debts might be one of the biggest problems we uncover, attempting to keep debt a secret more often causes a wider spiral, as households fail to manage budgets, borrowing from credit cards and payday lenders to continually sweep everything under the carpet. It has a wider impact too, usually effecting an individual’s health and relationships with those around them, as stress levels gradually increase (not to mention the interest rate!). As a rule of thumb we would never endorse anyone hiding their debts, make sure you go and talk about it to friends or family. Addressing your issues is the first step to recovery.
If you or anyone you know requires advice about debt, then contact us, a charity like Step Change or the Citizen's Advice Bureau. Our dedicated teams offer free initial advice and do not need your personal details to discuss your problems; we will always give unbiased and professional advice on any situation.