Britons are hiding £96billion of debts from family and friends

BRITONS could be sitting on a £96billion hidden debt mountain, with almost half owing sums they have kept secret from family, partner or friends, claims a government-backed organisation.

The average person with hidden debt owes £4,164, a survey by the Money Advice Service (MAS) found.

It calculated that if the figures were projected across the UK adult population, the total hidden debt amount could be as high as £96billion.

Nearly half of the 4,000 adults surveyed reported hiding debt from loved ones.

The survey was released to mark Talk Money Week, which runs until Sunday and aims to improve money management skills and financial well-being.

Nearly a third of people with debts who are in a relationship said their partner did not know about all the money they owe.

Five per cent admitted their partner was completely in the dark about their debts. Half of men said they had not told friends about debts, compared with 43 per cent of women.

Credit cards were the most likely source of hidden debt, with personal loans, overdrafts, informal loans from loved ones and store cards also common sources of hidden debt. Less common were payday loans.

Reasons why people keep their debts hidden include not wanting to burden others, not wanting friends and family to worry and not having the confidence to speak about it.

Caroline Siarkiewicz, head of debt advice at MAS, said: “Debt can be a difficult topic to broach, especially if you’ve fallen into a spiral and don’t know how to get out of it. Sharing a problem is the first step to solving it. It’s always better to be open with loved ones when it comes to money.”