Those people who are struggling to manage their finances should be honest about their problems, a new report suggests.

In research carried out by online credit information provider Equifax, just under a quarter (23 per cent) of Britons claim to have told a financial mistruth to their partner. Such consumers are revealed to have either lied about how much something has cost or on their levels of debt, whether accrued through the likes of personal loans, overdrafts or credit and store cards. The company also revealed that middle-aged people are most likely to be mistruthful about their financial situation.

Some 21 per cent of those in their 30s admit that they have told a white lie regarding to their finances, with this proportion rising to 31 per cent for 40-somethings. On the other hand, just nine per cent of 18 to 25-year-olds have been dishonest about monies owed. In particular, problems in managing money could be even more pronounced for the 14 per cent of those surveyed who state that they have hidden debts of at least £5,000. Research from the financial services firm also revealed that at 58 per cent men are more likely than women to keep the money they owe in loans, credit cards and other types of debt a secret.

Meanwhile, Equifax also pointed towards the financial difficulties that Eastenders character Billy Mitchell is currently facing as an example of the problems unwise money management can cause. In an attempt to get to grips with spending he has been shown stealing from a charity box – and although the firm indicated that “this might seem a far-fetched storyline” it is indicative of the stresses that hiding debts can place upon people.

Commenting on the figures, Neil Munroe, external affairs director for Equifax, said: “Mounting debts can have a far-reaching impact on partners and families as well as the individual. And, unfortunately, there are more and more stories of people hiding debts from loved ones, highlighting the heartache that comes with these costly secrets.”

As a means of getting back on their financial feet, Mr Munroe urged those with money management problems to be honest about the difficulties that they are facing. “The first step on the road to recovery is to own up to debt and seek support from those close to you. Talk to lenders to agree on a realistic repayment plan and talk to the various organisations, such as the Consumer Counselling Service, National Debtline or Citizens Advice Bureau, who will give consumers valuable advice. When it comes to debt, honesty is definitely the best policy and best way to end the nightmare,” he said.

Consumers were also urged to take out a copy of their credit history. In doing so, people may be able to secure access to a cheap loan and other types of low-rate borrowing. The credit reference company advised borrowers struggling with their finances to speak to the lenders to which they are in debt with to see if a more realistic monthly repayment schedule can be agreed upon. Additionally, people should look to be honest with their loved ones about their financial situation. Doing so, Equifax suggested, could see consumers with spending difficulties receive monetary support.

Those looking to face up to the financial problems that they are experiencing and reduce pressures on spending in the coming months could be advised to apply for a debt consolidation loan. In a study conducted by GfK NOP on behalf of Bradford & Bingley earlier this year, more than one in ten (11 per cent) Britons said they are looking to cut back on their expenditure in the coming months. Meanwhile, 21 per cent of consumers are worried about the amount of money they owe through various sources of borrowing. For these people – and many others – a consolidation loan could be an ideal way of getting to grips with spending.

1 Stop Finance Shop providing you with breaking debt consolidation loan news.