AXA: 24 % of UK adults hiding some form of debt from partners

A fresh study released by giant insurer AXA has shown that at an estimated 24% of UK adults are hiding some form of debt from their partners, friends and family. The research, which explores the psychosomatic profile of the indebted British consumer, revealed that the majority of adults prefer visiting their dentists rather than seek the service of a financial adviser.

Researchers also found that one in every 10 British men would rather have minor surgery than face their financial problem by seeking professional debt help.

According to AXA, the findings of the study show that British consumers are overwhelmed by “the three ‘I’s”; inertia, ignorance and immediate gratification. It also pictured British adults as reluctant to seek professional assistance for their financial woes and confusion on how to face the problem.

The result of the study came as the latest government statistics revealed that the total personal debt of UK individuals stood at £1,458bn as of end of October.

Total consumer credit lending to individuals was placed at £228bn in the same period. The annual growth rate of consumer credit continued to fall to – 0.1%. Average household debt in the UK is ~ £9,120 (excluding mortgages). This figure increases to £21,210 if the average is based on the number of households who actually have some form of unsecured loan.

Eugene Farrell, a behavioural specialist at AXA commented, “The study proves that resistance to money management runs deep and it seems that we may even be pre-programmed to stick our heads in the sand.”

Psychologists explained that the human brain is wired to any change, preferring to look for familiar models instead of finding new routes, in a bid to save energy and mental capability.

AXA estimates that the “secret” debts of British adults which they are trying to keep from their families and friends may reach £50 billion. Most of these debts are credit card, loans, and other forms of debt.

Individual hidden debts are placed at £4,000 each for every individual, the research found.