Or is your partner?
Experian reveals that 16% of Brits believe their partner has financial secrets hidden from them and 11% think that their partner is not being honest about their spending habits.
Financial disclosure is not a prerequisite of a partnership, however withholding some drastic financial situations fails to help a relationship, as it affects not one but both members of the pairing.
Credit card debt, loans, overdrafts and missed bill payments are among the most common monetary issues that are being kept quiet between lovers.
Debt is of course something that impacts both when applying for joint credit agreements such as a mortgage, so if one has a bad credit score this can bring the other’s down too.
27% of couples argue as a result of keeping finical problems to themselves, spending being the most common complaint of all, in 7% of cases this has also led to a split. The trust can be shattered when one is secretly affecting the other person’s chances to progress financially.
Surprisingly, men are the bigger spenders, with an average of £344, compared to women who would be more comfortable spending on average £265, without a thought for their partner’s input. Socialising and hobbies are men’s biggest downfalls when it comes to splurging, whereas women conceal the truth about the damage caused after one of their clothes shopping sprees.
Julie Doleman, Managing Director, Experian Consumer Services, commented:
“It takes a while for any couple to feel comfortable enough to discuss their finances. However, if you are planning a future with the person you love, financial honesty is important. Understanding the impact of your past spending and borrowing habits will help you see the way forward to realising your aspirations, be it buying a home or even starting a family.
“Sitting down together and checking both of your credit reports will give you a good overview of your current financial situation, and will help guide you in making any improvements necessary before you might need to apply for credit in the future. Taking the time to understand how you can improve your credit scores now could make a big difference to your bank balance in the future.”
Experian offers the following advice if you are secretly a money squanderer:
Keep calm: Everyone is guilty of spending over their means- it’s most important to discuss if these have escalated to affecting your future together.
Keep a firm grasp on the situation: Your money is in your hands- so try to understand where your biggest outgoings are, where you can save and how you can get on the path to achieving your future goals.
Past finances are important: Your debts from university will have an impact on your future applications for renting or buying a house for example, so see where your negativity lies and try to avoid the same mistakes in future.
Sink or swim: You might want to pool your money for ease, however if you don’t have the same attitude towards your spending then it could negatively affect the partner who is more careful with their outgoings. Keep it split so you don’t damage the other person’s chances of getting credit in future.
Plan things together: Credit history generally only spans over six years and recent behaviour is usually the most important- seek advice on how to get your credit reports to shine.
www.creditexpert.co.uk
tagged in Partner Couples Relationship