Secrets!!

Secrets you say, what do they have to do with a financial blog?

Well a lot apparently!

Last week I had a couple in my office applying for a mortgage. Bob started with his information and he was the money manager of the home. He answered all the questions. We had made it far enough in the application to start discussing serious details... so I pulled up their credit report. As this is going on we are discussing assets (what they own) and liabilities (what they owe). The report pops up on my screen. Bob has two credit cards - one with a small balance from their recent trip and the other is at zero. I scroll down to Jen's report and it shows she has four credit cards, all different from Bob's and they are all at or near their maximum limit. Well she shyly says, yes they are all hers.

At this point in time Bob is just about falling out of his chair, he knows nothing of the cards. Once he starts breathing again after the shock has worn off, it was not a happy tone in my office. Her secret use of cards and NOT paying them has caused a great deal of marital strife... and there I sit not sure what to do or how to smooth over the waters. Even if he had known about the cards it may have went better. This large secret had changed the scope of our appointment from a straight mortgage application to a consolidation loan and increasing the mortgage due to the large amount of debt on the credit cards.

It worked out in the end, but the stress I dealt with in my office I'm sure was minimal compared to what was discussed on the car ride home!

Do you have any financial secrets in your closet?