Scots More Likely to Keep Loan Debts a Secret

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Mon, 16 Nov 2009

Almost half of the Scottish population has secret debts according to a new survey by AXA . The global insurance company carried out a survey revealing that Scots are far more likely than the average borrower in the UK to keep their debts secret from friends and family. 46 per cent of respondents to the AXA survey admitted to having kept unsecured debts from loved ones. In the rest of the UK, it is believed that 12 million people keep debts to themselves – around one in four of the population.

Sources of secret debt vary, with debts such as credit card bills, personal loans and overdrafts most commonly hidden by borrowers. Worryingly, many of these forms of debt are accompanied by high interest rates . The causes of these debts are equally varied, with 35 per cent of people racking up debt on their credit cards through the purchase of clothes, while holidays account for 34 per cent of the debts and eating out a quarter of the debt.

To help tackle the problem of unsecured debt, AXA suggests that a debt management plan could be an effective solution. The plan should be seen as a last resort but can allow consumers to reduce repayments on existing loans .

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