Hello darling, Ive got an expensive secret! By: Adam Singleton

Almost 1.3million Britons are hiding loans valued at almost 7.7billion from their partners and families. To make it worse many of those are paying interest at a much higher rate than they should, as they dont always seek out the best deal in their furtive attempt to keep their borrowings secret from their loved ones.

Recent research by Abbey Loans found that the majority of people who took out loans without informing their nearest and dearest did so to consolidate existing debt, with 56 per cent of people admitting to taking this action. The average size of their loan amounted to 5,720 but, as with all averages, that doesnt present the total picture. Incredibly, five per cent of those polled managed to conceal sizeable debts of between 20k and 50k; the substantial remainder borrowed less than 3,000.

But, even though the majority of secret borrowers are consolidating debt, the remaining 46 per cent use their loans as a fresh line of credit. Almost two per cent of the respondents admitted to using the money to pay for cosmetic surgery. Hiding the loan may be relatively easy but quite how one keeps the effects of surgery from the family begs another question that sadly wasnt answered by this survey! Seven per cent used their advance to pay medical bills, and 15 per cent used the cash for home improvements.

Why the borrower opted not to tell their partner or family about their loans stemmed mainly from embarrassment with 56 per cent of respondents quoting that as the primary reason for keeping the borrowing under wraps. A further 29 per cent insisted it was a private matter and was of no concern to their partner, while six per cent had to keep it secret as the purpose of the loan was to surprise their other half with a holiday treat or special purchase such as a wedding!

Other reasons for the loans included large purchases such as cars, or to lend money to friends in financial trouble. However, Director of Abbey Loans, Paul Morrish believes that the problem in taking out loans in secret is that generally people dont shop around, let alone get impartial financial advice. By keeping it to themselves secret borrowers cannot be open and honest about the amount they can afford to pay back. He is also concerned that many people would not take out the most suitable loan for their secret purchase or debt consolidation as there are many different loans for different purposes.

Morrishs advice to would-be secret borrowers is simple: dont do it! For the benefit of your joint financial future, be open and honest about your finances with your partner.