Brits break up over money worries

Spending and borrowing are causing one in four (26 per cent) couples to argue – and one in 20 to break up – according to the latest Personal Credit Index survey from CreditExpert, the online credit report monitoring service from Experian.

Despite the Index rising by two points, indicating an increase in consumer credit confidence, money worries are proving a relationship-breaking issue for many.

The Index, which is based on survey data from Ipsos MORI in January 2007, tracks consumers’ current credit confidence and future expectations on a quarterly basis also reveals:

Almost one in 10 (nine per cent) lie to partners about their finances – and even hide bank and credit card statements from them

18-34 year olds are the most likely to argue with their partners about spending

A third of couples with children argue about finances and seven per cent break up over arguments about finances – with the result that approximately 2 million children are being affected by their parents’ or guardians’ financial problems

While overall consumer confidence has risen, a North/South divide has emerged, with
London and the South suffering a drop in consumer confidence

Relationships and money matters

The Personal Credit Index from CreditExpert reveals that while a quarter of the nation argues with their partners about financial affairs, those aged 18 to 34 are the most hot tempered, with almost half (42 per cent) having had a disagreement about money. Adults aged over 55 are the least likely (11 per cent) to have rows about spending with their partners. Almost a third of couples in supervisory, clerical or junior managerial social groupings (30 per cent) argue about finance, as do 28 per cent of higher managerial or professional groups. Just 17 per cent of those not working bicker about money.

The Index also highlights that financial arguments are more prevalent among those who are uncomfortable with their level of borrowing, with 51 per cent of those admitting to arguing about debt and spending and one in eight (13 per cent) reporting that they have broken up with their partner over finances.

Money arguments are overwhelmingly about spending, with more than 90 per cent citing their own or their partner’s spending as the bone of contention. A further 27 per cent have disputes over borrowing. Some couples quarrel over both spending and borrowing.

Credit confidence up…and down

While financial affairs are splitting relationships, the January 2007 Personal Credit Index from CreditExpert also reveals a difference in overall financial confidence between Scotland and the North and London and the South. This quarter shows the biggest discrepancy in credit confidence between the two regions to date.

Last quarter, confidence in Wales and the Midlands had dropped to a low of 92 while Scotland and the North fell to 96; London and the South, however, were riding high at 101 and 97 respectively.

Now, while the Midlands and North are feeling much more confident, with regional Indexes of 104 and 101 respectively, London and the South’s financial poise is decreasing with Index scores of 92 and 90 respectively. This could largely be because of high housing prices in the South and recent concerns over rising interest rates, fuel prices and council tax. See the accompanying CreditExpert Personal Credit Index report for details.

Keeping up with repayments

The rise in the overall Index indicates that the nation remains confident that it can pay its bills, with 86 per cent of Britons being either confident or very confident that they can pay household bills, credit or store card bills repayments on time. This is a three point rise on the previous quarter.

“The Index underlines just how many couples in Britain argue, and in some cases split up, over their finances. It’s hardly surprising that 18-34 year olds – those most likely to be first-time buyers in the property market – feel the pinch and argue the most. What is sad is the number of children affected,” says Jim Hodgkins, Managing Director of CreditExpert.co.uk.

“As the Index reveals, it has never been more important to keep on top of your financial situation – if you feel worried about your level of borrowing, then your partner will pick up on it and feel worried too. An online credit report monitoring service such as CreditExpert will provide a summary of your credit situation, as well as alerting you to any changes in your credit report which could have an impact on your future financial plans. It could just help prevent future quarrels.”