Why are women getting into debt?
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Credit analysts claim that female
personal bankruptcies are now growing at 25% a year. But why is this
happening?
One likely answer is the increased cost
of living, combined with the fact that men's salaries still generally
outstrip women's in the world of work. Also, many women who have
children will take time out of their careers to raise their families
and often return to the workforce on a lower income than they might
have reached if they had stayed in work.
According to the Office for National
Statistics, at the end of the tax year in 2010, the median gross
annual earnings for full-time men were £28,100 and for full-time
women were £22,500.
When women generally earn less than
men, they may feel the need to borrow to maintain the same standard
of living they see enjoyed by other people.
Another factor in female insolvencies
could be the actual cost of raising a family - especially for single
mums.
'Traditionally', mums pick up the bulk
of the childcare responsibilities. If women choose to stay at home to
raise their children, they won't be earning a salary - and if they do
return to work, there is the cost of professional childcare to
consider.
Then there are 'social pressures' to
consider, with many films and magazines encouraging women to fund
lifestyles beyond them - by borrowing, if 'necessary'.
In all, it's a range of factors. Aside
from the rising cost of living and lower average salaries, the higher
public awareness of insolvency options, such as IVAs (Individual
Voluntary Arrangements), are all likely to have made a significant
contribution to the rising numbers of female insolvencies.
Sources.