Friday, November 20, 2009
Category:
Consolidation
According to new research conducted by AXA, 24 percent of UK adults are hiding some form of debt from their partner or family.
This equates to 12.2 million people who are concealing debts such as overdrafts and credit cards. On the basis that the average value of hidden debt is £4096.32, this indicates that there may be a total of £50.1 billion nationwide.
The research also revealed that the state of finances is third on the list of things that UK adults lie about. Ranking more highly was the number of previous partners and the amount of money spent on an item of shopping. It was found that 40 percent of people will tell their friends, family and partner lies regarding their finances. At 44 percent, the research showed that those between 19 and 30 years of age are most likely to do so. The same group is also reported to have the greatest level of concealed debt at 26 percent. However, the greatest sum of concealed debt was discovered amid those between 36 and 40 years of age at £5883.80, and those between 46 and 50 years of age at £5880.47.
Further findings included that women are most inclined to tell lies surrounding shoes and shopping at 24 percent, and men are most inclined to lie about the amount of drink consumed at 24 percent. An additional 22 percent are reportedly likely to lie about the condition of their health.
In relation to the reasons behind financial lies, the research showed that 31 percent are embarrassed by their debts, whilst 23 percent are fearful of how people would react. For 21 percent, they are hiding their debts because they have spiralled out of control, and 14 percent did not realise the extent of their debts.
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Homeowners who have multiple credit cards, store cards and hire purchase agreements, could consider taking out a secured loan to re-organise their finances. One of many finance options available, a secured loan for debt
consolidation could lessen juggling multiple monthly repayments. By tying them all up in one place, the borrower could be left with a single monthly repayment which could potentially be lower than current outgoings. However, if opting for a secured loan to consolidate debt, it should be remembered that consolidating debt may increase the amount paid back overall and will also extend the repayment period of debts.
