Problems Arise When Hiding Credit Card Debt From Family

As the economy remains tight, CNN takes a look at what may be a growing problem for many families: Hidden debt.

When times get tough, many people are inclined to cover up what they hope will only be short-term debts.But not being open about your debt relief needs may compound the problems.

CNN highlights the strain this put on a couple in Texas. The husband runs a non-profit that focuses on teaching financial literacy, but his wife had a growing problem with credit card spending. She took a line of credit with plans to pay off overtime her purchases of clothing and toys for her children. But as she let the debt ride from month to month, interest and new spending mounted and quickly got out of control.

When the husband ran the couple’s credit report, everything came to the light of day. The couple then had to sit down for some heart-to-heart conversations.

Hidden credit card debt may also become a burden outside of marriage if you’re keeping your struggles from other family members. A major side effect of out-of-control debt may be increased stress and health problems. Keeping your debt a secret may only make things worse.

In one example from CNN, a son who was doing some investing for his mother went so far as to forge receipt documents so she wouldn’t know how much money she really lost. Those type of secrets can take a real toll.

So what should you do if you find yourself suddenly in over your head?

  1. Be open and honest with yourself and others. Particularly if your finances affect others, be honest about your situation. Hiding your credit card debt may only increase your stress, complicate the problems and keep you from taking real action.
  2. Explore your options. Even if you feel helpless, it’s important to know there are debt relief options out there. What’s more, there are many different types so there is a good chance you’ll be able to find something that fits your needs: From Chapter 7 bankruptcy to adjusting your monthly budget.
  3. Take action. Your debt won’t magically disappear if you sweep it under the rug. Confront it head on.