You are here: Home - Credit Cards & Loans -

Credit crunch causes familial friction

Written by:

The effects of the credit crunch are leading people into concealing their financial woes from their loved ones, according to Moneynet.

Of those surveyed, 14% said they have debts on an overdraft, credit card or personal loan that their spouse or partner knows nothing about.

And nearly a quarter of those who responded to the survey said they would rather pay high rates of interest on a loan or credit card to get by than admit to their close family that they are in financial difficulty.

Andrew Hagger, spokesperson for Moneynet, said: “The fact that a significant number of people would rather get into debt than share their worries with those closest to them is a shocking indictment of the state of the nation’s finances.

“It shows just how much pressure people are under to stay afloat and with house prices still falling, energy costs soaring and rising inflation keeping a cut in interest rates off the agenda, the number of people in real trouble will only increase.”

It’s not just luxuries or non-essentials that are busting consumers’ budgets. As many as 20% say they are having to use a credit card to pay for everyday household expenses in order to make ends meet. But this is before the massively increased gas and electricity bills have even landed on the doormat, so what seems difficult for some now could become impossible in the coming months.

Related Posts


Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
One in four ignore travel insurance

One in four Brits claim not to be taking out any travel insurance for this year’s summer holiday, according to...