Growing debt levels being kept secret from loved ones

HOUSEHOLDS are potentially sitting on a £96bn hidden debt mountain, with more than twofifths of people owing sums which they have kept secret from their family, partner or friends, a government-backed body has found.

The Money Advice Service (MAS), which released the findings to mark Talk Money Week, said the average hidden debt across the UK amounts to £4,164 per person.

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

Some 44 per cent of those surveyed report hiding debt from their family, partner or friends.

Talk Money Week, which runs until November 18, aims to improve people’s money management skills and financial wellbeing.

Nearly a third (29 per cent) of people with debts who are in a relationship said their partner did not know about all the money they owed. And five per cent admitted their partner was completely in the dark about their debts.

Women are more likely to talk to their friends about debts than men, the research suggests.

Fifty per cent of men with debts admit that their close friends do not know anything about it, compared with 43 per cent of women, according to the MAS, a body set up by Government to offer money tips.

Credit cards were found to be 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.

Common reasons why people keep their debts hidden include not wanting to burden others with their money problems; not wanting friends and family to worry; and not having the confidence to speak about finances.

Caroline Siarkiewicz, head of debt advice for the MAS, said: “Sometimes it can be easier to pretend everything is all right and avoid opening up about our debt problems to escape the tough conversations, not because we want to cause harm, but because we want to shelter those closest to us from our problems or are concerned about being judged.”