Wednesday, April 15, 2009
Category:
Secured Loans
According to new research conducted by CreditExpert.co.uk, 19 percent of Britons are keeping their money troubles under wraps from their partners.
In fact, up to £30 million of debt remains undisclosed. In addition, 10 percent of Britons that are currently in a relationship confessed to possessing a bank account that their partner is not aware of.
The research was carried out in order to assess the degree of financial secrecy apparent within British relationships. Despite 89 percent realising that financial honesty is a crucial element of a relationship, this is not actually acted on in many cases. As well as covering up debt and having private accounts, the research also revealed that 27 percent read their partner’s bank statements or payslips without their knowledge. It was also found that 10 percent have made a secret purchase from a joint or savings account, and that 13 percent are not honest about the number of credit and store cards held. Finally, 15 percent do not share salary and bonus information with their partner.
Director of CreditExpert.co.uk, Darryl Bowman, commented: "If you have something to hide, you might want to consider that one joint application for credit with your partner creates a ‘financial association' on both of your credit reports and that means your financial behaviour could impact your partner's finances, including their ability to get credit. Couples should be honest about money, particularly if you are already financially linked and if you plan to have joint accounts in the future."
A primary reason behind financial secrecy would appear to be related to embarrassment, with one in ten admitting that they are ashamed of their finances. However, one in five simply do not want their partner to know everything about their finances.
In terms of the gender divide, it would seem that women are less honest regarding their finances than men. 31 percent of women read their partner’s bank statements in comparison to 24 percent of men. Similarly, a greater proportion of women than men are undisclosed about the amount of money they spend. 28 percent of women do not inform their partners of how much they have spent on clothes and shoes, compared to just 11 percent of men. However, men are more inclined to refrain from honesty where their earnings and bonuses are concerned. 17 percent of men fall into this category compared to 13 percent of women.
Geographic differences were also noted further to the research, with London harbouring the highest number of secretive couples. 29 percent of these couples do not share information about their debts and 24 percent do not reveal salary or bonus amounts.
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Homeowner couples with mounting debts may wish to consider taking out a
secured loan. A secured loan could be used to wrap multiple, confusing monthly repayments into just one potentially lower monthly repayment. A secured loan is one of many finance options available to consolidate existing debts and when choosing this option, it must be remembered that consolidating debt may increase the amount paid back overall and extend the repayment periods of debts.
