Couples lie about finances
Avoid sexually transmitted debt, writes Sophie Elsworth
LOVERS have been left inheriting their partners’ sexually transmitted debt but many don’t know about it until they are too far into the relationship.
Unhealthy finances can be the cause of financial friction between couples and ultimately result in bust-ups.
New independent research compiled for St. George Bank quizzed 1500 people and found the following:
• were guilty of bringing debt into a relationship.
• only one in two had been honest about it.
• of Australians admitted they didn’t always trust their partner with managing money.
• Four in 10 people felt embarrassed about their financial situation.
St. George Bank’s general manager, Ross Miller, said many Australians entered a relationship carrying debt.
“If you are forming a relationship and you are going to be living with a new person, both of you need to be open and honest about your financial situation so there’s no surprises,” he said.
Mr Miller said transparency was particularly important “if you are thinking of purchasing assets together”.
But for those looking to sweep the true state of their finances under the carpet, think twice – it’s likely to come out in the wash if you end up applying for joint finance with your partner, for things such as a mortgage or personal loan.
“It would be very disappointing at the time of loan application that you are finding out about your partner’s past debt or existing debt,” Mr Miller said.
Financial adviser Scott Haywood said if you were carrying debt it was important to address it sooner rather than later with your partner.
“Debt issues is something you want to be open and honest about at an earlier stage of the relationship rather than later,” he said.
“Relationships break down because of money issues in most cases.”
Mr Haywood said honesty always paid off.
“In my experience, if you have got a significant debt that you have been black-listed for, firstly try and fix it yourself,” he said.
“Go to your family first to discuss your finances before you drop it on your partner.”
While the report found 40 per cent of Australians felt embarrassed about their money situation, Mr Haywood said it was a matter of taking small steps to fix the problem.
“Money management is like a set of stairs; you have to take your time and achieve one small goal at a time rather than worrying about trying to climb a mountain in five minutes,” he said.
Mr Haywood said doing simple things such as siphoning off 10 per cent of your pay into a separate savings account was a good place to start, or considering debt consolidation options, such as getting a personal loan to get rid of credit card debt.