1 in 5 lie about finances as UK debt tops £55bn

Over a fifth (21%) of residents in the UK are not only in debt, but are lying to their partner about how much they owe. A new report from the Post Office revealed almost a third (31%) of people also admitted to hiding the extent of their debt from other family members.

Disturbing figures also suggested that one in eight of those that don't come clean about their debts end up turning to alcohol as a way to cope with the secret.

The average resident in the UK owes £9,731.51, through a number of borrowing channels such as credit cards and personal loans. However, studies have found that on average, people only admit to half of the true amount owed when talking to a partner or family member.

The report also highlighted the serious emotional and physical consequences that may arise from keeping such a secret, such as sleepless nights, anxiety, alcohol abuse and problems at work:

Donna  Dawson, a psychologist specialising in personality, behaviour and relationships, said: "Hiding the extent of debt from a partner or family member may give us a false illusion of control or independence, but the reality is that our mental and physical health suffers - and once uncovered, the health of our loved ones suffers as well. And the irony is that the very things we are trying to protect – our trustworthiness and our good self-image – is lost anyway, when all becomes revealed.

"Far better to operate as openly and honestly as possible from the start, and to take loved ones into your confidence at a much earlier stage – that way, debtors can get the help, support and advice that they really need."

According to the research, a massive 78% of those that that are of have hidden debts from loved ones have never confessed to the true extent of their financial fibbery. Of the 22% who admitted their financial problems, the majority (60%) were caught out rather than choosing to come clean.

A quarter of those that were found out admitted that they still tried to deny everything, despite one in four stating that hiding the debt only made their money problems worse.

Doug Strachan, Director of  Financial Services at the Post Office, said: "The recession has put a massive strain on many families and people may be, for  the first time, experiencing levels of debt that they cannot control. The most important thing to remember is that if you do need to borrow money make sure you are responsible about it and set out a clear re-payment plan. Managing the  debt effectively can mean there is no need to experience the terrible emotional and physical symptoms hiding debt can result in."

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