People 'are lying about their debt problems'
Published On 19 October 2007
People in the UK are risking debt and the possible need for IVAs because they regularly lie to themselves and their partners about their finances, a new study has shown.Financial website fool.co.uk found that 16 per cent of people in the country have lied about their debt situation.
In addition, nearly a quarter (23 per cent) of people revealed that they have lied about the cost of a luxury item to make the purchase seem less extravagant.
What's more, 11 per cent of people could be getting into more financial trouble and not know about it, as they never open their bank statements.
"It seems that what starts out as a little white lie about our shopping habits can quickly turn into a nasty black stain on our credit report if we don't talk openly about money," commented David Kuo, head of personal finance at the website.
"It's a real shame that people feel they can't be open about their finances, especially with friends and family.
"It may not always be easy to do your dirty laundry in public, but it's preferable to being hung out to dry by creditors. Chances are you'll be able to gain tips from others to help reduce debt and start saving."
Credit Action figures show that personal debt in the UK exceeded £1.36 trillion by the end of August.
