Sheree's flatmate (let's call her Penny) has a problem with exaggerating... or to put it more bluntly, lying. Often Penny will come home with some dramatic story of something that's happened to her that day, which Sheree can tell is at least partly untrue.

Recently it came to a head when Penny was involved in a small domestic mishap, of very little consequence. Penny started bragging to friends in an email about the great drama that had unfolded, and by the end of the day, the story had grown beyond proportion.  Sheree knows most of the story isn't true, as she was home at the time knows what actually happened. Sheree confronted he flatmate about the grand story, but Penny denied he was lying, told Sheree she didn't see everything that happened, etc.

Sheree's wondering what she can do. Her flatmate is a good friend and she doesn't want her to come unstuck because of a bad habit. There's the problem of Penny's friends being lied to as well--including her boyfriend.  When will the tall tales be found out and Penny's friends and boyfriend feel inevitably lied to? Apparently Penny's always been a storyteller but has never grown out of it.

Let's give Sheree some second opinions.

DISCUSSION POINTS

• Telling a tall tale might be cute for a little kid, but for an adult it's got greater consequences... how can Sheree help her flatmate to see the effect it's having on the people around her?

• Sheree wonders if there's something deeper going on that could be causing her flatmate to behave this way, and if so, whether there's a way to address it?

• How do you confront someone and help them to see their problem, especially when they've already denied it once?

EXPERT POINTERS from Sue Bartho, Clinical Psychologist.

Like any emotional or behavioural problem that you notice in a friend, you can really do NOTHING about it unless THEY decide to face it (except of course, pray and communicate well).
 
As a flatmate, I would look for a relaxed time to have a chat with Penny, to say that your concern has continued about her behaviour, and that you are worried about the impact it could have on her relationships.
 
I would use really gentle language, like "exaggerate", as "lying" implies a more sinister motive. 
When she exaggerates again, gently challenge her about it.  This Reality Check is the most helpful thing you can be doing for her.
 
Rather than just pointing the finger at her problem, it can be quite powerful to share with her an area of growth that you are working on, and your own journey in understanding yourself.  This puts you on the same level as "fellow travellers", rather than making her the one with the problem.
 
This kind of behaviour is quite clearly an issue of low self-esteem, needing to pretend to be better than I am, and is best dealt with with an experienced counsellor or psychologist.  It has no official diagnosis, but in its extreme form, is associated with several of the personality disorders (a term I would NOT be using with your flatmate!!).  You probably could say to her, that truthfulness and integrity are profoundly important issues in any friendship, because they are the basis for trust, and that she is really compromising her relationships and herself when she "flavours the truth".
 
If her behaviour continues unabated, and she is ignoring your requests for truthfulness, then you have choices about setting boundaries in your friendship, that might include moving out.