Borrowers hiding loans from loved ones

Up to 1.35 million of the unsecured personal loans taken out by British consumers were made without the knowledge of family members and partners, it has been revealed.

The total value of the loans is estimated at £7.7 billion, with respondents to the poll conducted by Abbey Loans, revealing a range of reasons for keeping them secret.

The majority (56 per cent) said they had kept the loan from their partner because they too embarrassed to tell them.

Meanwhile 29 per cent said the loan was for a facet of their life that they considered private.

More happily, six per cent said they had borrowed the cash to surprise their partner or family.

The findings prompted Paul Morrish, director of Abbey Loans, to warn against keeping personal finances clandestine and called for greater openness from borrowers.

He said: "Borrowing in secret - especially large amounts - is not advisable and we would encourage people to be open and honest about their finances.

"Talking about your financial situation with others can help so that you can be realistic about what is affordable."

The lion's share (54 per cent) of respondents to the survey had taken out a loan of £3,000 or less.