Britons 'need to stop lying about debt'

19-Oct-2007

Many Britons are risking making it harder for themselves to get onto the property ladder by lying about their levels of debt, according to Fool.co.uk.

The website's study has revealed that one in six Britons have lied about exactly how much debt they're in, and the problem is especially bad for those likely to be looking to buy their first home.

Almost a quarter of those aged between 18 and 34 have been dishonest in this way, the study added, with Fool.co.uk adding that a bad credit report could be just one consequence of this kind of denial.

If that were to be the case then it would result in many more first time buyers struggling to get a first time buyer mortgage, especially in the current lending climate.

"It seems that what starts out as a little white lie about our shopping habits can quickly turn into a nasty black stain on our credit report if we don't talk openly about money," commented David Kuo, head of personal finance at Fool.co.uk.

"We'd encourage the nation to be honest about their money matters. It may not always be easy to do your dirty laundry in public, but it's preferable to being hung out to dry by creditors.

"Chances are you'll be able to gain tips from others to help reduce debt and start saving," Mr Kuo concluded.

Bad credit, or sub-prime, borrowers, have seen the number of residential deals available to them fall by 54 per cent over the past three months, mortgage advisors at Moneyfacts have revealed.


More first time buyers seeking debt advice
http://www.firstrungnow.com/first-time-buyer-news/more-first-time-buyers-3524.aspx

First time buyers warned over home debts
http://www.firstrungnow.com/first-time-buyer-news/first-time-buyers-warned-3468.aspx

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