- 11
- Nov
While money has often been considered a private matter, a new study suggests that when it comes to discussing their financial position, many Britons are less than truthful.
According to AXA, more than one in three UK residents have misled a partner, friend or familymember about the stability of their finances. Furthermore, the group warned that with the global economic outlook appearing less rosy, many more may feel it is necessary to spin a few tall tales when it comes to discussing their cashflow position.
However, a leading psychological expert has claimed that now is actually the perfect time to come clean about debts and look to take a fresh approach to managing money. Commenting on the findings of the AXA study, Andrew Kinder explained that hiding the facts about financial insecurity is likely only to exacerbate them in the long term.
Indeed, he warned: “This is the worst possible time to be in denial about your finances. Unburdening your financial transgressions, even anonymously, can be a crucial first step to taking better control. There is often much more behind a deception, even a relatively trivial one. You tend to find that when people make a confession theyre much better able to deal with these underlying problems.”
For those who have found themselves overburdened by mounting payment responsibilities in recent months, taking out a consolidation loan may prove an effective tool in scaling the debt mountain. In applying for this type of loan, consumers could find they are able to stretch repayments over a longer period, thereby increasing monthly cashflow and reducing the likelihood of being drawn further into the red by missed payment charges.
Meanwhile, Alison Green, a spokesperson for AXA, urged people to come clean about their finances, claiming that the only people they are deceiving are themselves.
“With harsh times ahead, people are likely to be in an ongoing cycle of panic and denial. Now is the ideal time to come clean and kick-start a more proactive approach to managing your cash and planning for the future,” she commented.
Further findings from the group indicated that it was common for many people to hide major purchases from their friends and family, with one parent even confessing to raiding his childs savings account and claiming that the money was a bonus from his work. His actual bonus had been cancelled as the credit crunch bit down.
Meanwhile, another lady who responded to the AXA study said that she had splashed out 70 pounds on face cream and decanted it into the bottle of a cheaper product to hide the purchase. Another respondent said that she had felt it necessary to lie about the size of her paypacket because her partner hoped to live off her income.
For those who have not been able to cope with the costs of supporting their household as bills rise and access to credit diminishes, taking out a debt consolidation loan may prove an appealing way to get back on their feet financially. Applying for a consolidation loan may be necessary for a growing number of Brits, as a study from the Motley Fool warned that many residents are unprepared to cope with a recession.
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