Millions of Brits ‘lie about their debts’

Millions of British credit consumers are dishonest about their debt management problems, according to a recent study.

Figures compiled by Fool.co.uk demonstrate that as many as one in six people around the country has at some point lied about the state of their finances.

In addition, the research from the financial comparison firm found that young people are the most likely to lie about debt management, with almost one in four Britons aged between 18 and 24 admitting to being dishonest about money-related matters.

Psychologist Donna Dawson, commented: “It isn’t surprising that money is such an emotive issue, because how we manage our money is a reflection of how well we’re seen to be coping with life in general.

“We lie about our financial problems in order to save face and to avoid being regarded as greedy, disorganised, naïve or out-of-control – all traits associated with over-spending or financial mismanagement.”

Earlier this year, accountancy firm KPMG forecast that more than 130,000 people in England and Wales would be declared insolvent over the course of 2007.