Experts on the importance of being honest and open with your partner about debt
Many partners have been caught out cheating on their significant other by lying about their true financial state. Here’s why you should be honest, open and transparent about debt.
Saver HQ
Don't miss out on the headlines from Saver HQ. Followed categories will be added to My News.
- Desperate kindergarten asks parents to send toilet paper
- Energy customers hit with controversial fee again
Lovers have been left inheriting their partners’ sexually-transmitted debt but many do not know about it until they are too far into the relationship.
Unhealthy finances can be the cause of financial friction between couples and ultimately result in bust-ups.
New independent research compiled for St. George Bank quizzed 1500 people and found the following:
• 20 per cent were guilty of bringing past debt into a relationship
• Of those only one in two had been honest about it
• 50 per cent of Australians admit they do not always trust their partner with managing money
• Four in 10 people felt embarrassed about their financial situation
St. George Bank’s general manager Ross Miller said many Australians entered a relationship carrying debt.
“If you are forming a relationship and you are going to be living with a new person, both of you need to be open and honest about your financial situation so there’s no surprises,” he said.
Mr Miller said transparency was particularly important “if you are thinking of purchasing assets together”.
But for those looking to sweep the true state of their finances under the carpet, think twice – it is likely to come out in the wash if you end up applying for joint finance with your partner, for things such as a mortgage or personal loan.
“It would be very disappointing at the time of loan application that you are finding out about your partner’s past debt or existing debt,” Mr Miller said.
Financial adviser Scott Haywood said if you are carrying debt it was important address it sooner rather than later with your partner.
“Debt issues is something you want to be open and honest about at an earlier stage of the relationship rather than later,” he said.
“Relationships break down because of money issues in most cases.”
Mr Haywood said honesty always paid off.
“In my experience if you have got a significant debt that you have been black-listed for, firstly try and fix it yourself,” he said.
“Go to your family first to discuss your finances before you drop it on your partner.”
The report also found 40 per cent of Australians felt embarrassed about their financial situation but Mr Haywood said it was a matter of taking small steps to fix the problem.
“Money management is like a set of stairs, you have to take your time and achieve one small goal at a time rather than worrying about trying to climb a mountain in five minutes,” he said.
He said doing simple things such as siphoning off 10 per cent of your pay into a separate savings account was a good place to start or considering debt consolidation options such as getting a personal loan to get rid of credit card debt.
Originally published as Experts on the importance of being honest and open with your partner about debt