Written by: Keith Tully
Reviewed: Tuesday 28th May, 2013
There is a rising tide of female insolvency, according to new research. Findings by The Debt Advice Foundation reveal that there has been an increase in the number of women in England and Wales being declared insolvent, and it is predicted to soon surpass the male counterpart.
The study found that only 30% of insolvencies in 2000 involved women however, by 2011 this had surged to 49%. What’s more, figures show that younger women are much more likely to be declared insolvent than any other age group, as two-thirds of insolvencies were females aged 18-24 years-old.
David Rodger, Chief Executive of the Debt Advice Foundation, said: “Our analysis of the Insolvency Service’s figures shows clearly that insolvency amongst women has been rising steadily and will overtake men this year.
“The high level of insolvencies among younger women is particularly worrying, as there is a clear trend here.”
Further analysis indicates that the type of insolvency that men and women are entering has significantly differed. Around 32% of women opt for a Debt Relief Order (DRO), in comparison to just 17% of men.
Mr Rodger said the reason for the stark findings remains unclear, commenting: “We could be seeing the fallout from a continuing gender pay disparity, or women could well be tackling their debt problems at an earlier stage than men. And our experience is that women are more likely to pick up the phone and ask for help than men.
“What we know for certain is that a generation ago it was difficult for a woman to get any kind of a loan, and married women would routinely be expected to ask their husbands to co-sign a hire purchase agreement.
“Today by contrast short term loan companies are targeting young women ruthlessly, with marketing campaigns suggesting that they have an entitlement to a wide range of non-essential consumer goods, whether they can afford them or not.”
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