This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Why Are You Keeping Your Debt A Secret?

Another group that finds it hard to keep their financial challenges secret comprises the growing number of adult children who are being forced to live with their parents. Investopedia says that there's even an acronym for people in this position: KIPPERS, or Kids in Parents' Pockets Eroding Retirement Savings. Reuters recently quoted Census Bureau data that suggest that, between 2007 and 2010, 1.2 million extra KIPPERS moved back into their parents' homes, bringing their number to 15.8 million. Again, KIPPERS frequently find it hard to keep their situation to themselves.

In many circumstances, keeping your debt secret serves only to put off the evil hour, and simply makes the final denouement even more embarrassing.

It's good to talk

How much easier it would be if we were all more open about these sorts of problems. If the people who are important in your life knew you were experiencing difficulties, they might better understand why you are reluctant to join them in restaurants, bring a bottle of good wine to dinner or travel long distances to family events. And sharing information with your kids may help them moderate their expectations, as well as provide them with potentially valuable money-management lessons for their own futures. Being upfront about how tight things are could allow you to save unnecessary expense, and pay down debt faster.

You might even get an offer or two of help. However, those sometimes present their own problems. If your parents, say, aren't rich, and your chances of repaying them are slight, then you might need to summon the strength to decline their kindness. Better to go bust owing a few credit card companies than crippling mom and dad financially.

Credit card interest rates high

But if someone wealthy offers to bail you out, then why not consider it? At the time of writing average credit card interest rates are running at 16.87 percent, while savers are often lucky to receive 1 or 2 percent. If you agreed on a personal loan at 5 or 6 percent, you could reduce your interest payments by close to two-thirds while your lenders could triple their return on their savings. If that's not a win-win, what is?

Of course, not everyone has rich friends or relations who'd be willing to help. And some may know that the significant people in their lives would greet news of their debt with disdain or worse. But if all that's holding you back from breaking the bad news is an overblown sense of shame, you might find that sharing your problems really does halve them.

2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs