Lots of people have some sort of debt to speak of, whether that’s a credit card, store card, loan or student debt. But while debt itself is not unusual, there are some people that feel the need to keep quiet about what’s really going on with their finances.
So how many people in Yorkshire have secret debts, and why are they keeping quiet? Let’s have a look at what the stats say.
Research from Debt Advisory Centre shows that one fifth of people in Yorkshire have debts that their partner or family are not aware of. And over a quarter of those people, owe between £5,000 and £10,000 that they’re keeping secret.
So what kinds of debts are people keeping quiet about? Well, personal loans are the cause of a large number of the secret debts in the region, with half of people saying they owe the most to personal loan providers. Almost two-fifths said that they owe the most on credit cards.
While we may think of our emotional life and our financial life as two separate things, the research shows that they are very often linked and one can sometimes affect the other. Almost a third of people said that they were keeping certain debts a secret due to embarrassment, and the same number of people said it was because they are ashamed. Almost a third of people simply wanted to pay off their debts as soon as possible, without anyone knowing they had ever existed.
As we said at the start, having debt is not necessarily a bad thing. If you have a good reason for borrowing in the first place and a sound plan for repaying the money, then it’s not something that you need to feel embarrassed or ashamed about.
It’s understandable if you don’t want everyone in your circle of family and friends to know all the details about your personal finances, and in most situations it’s up to you whether you tell other people.
But there are some situations where honesty might be the best policy. For instance, if you share finances with your partner, your credit history could have an impact on theirs. So if you’re having problems repaying debts, this is probably something they would want and need to know about. If you’re considering borrowing from family, friends or a partner, but you’re already having trouble repaying other debts, then it might be fairer to let them know about your situation.
If you’re struggling to repay everything you owe, you might find that those secret debts become a heavy burden. The good news is that there is always a way out of problem debt – you can contact a trained debt advisor to discuss your options.
Debt Advisory Centre: 0161 871 4881