IVA or debt advice could help women

27/07/2010

IVA or debt advice could help women

Women may be more in need of professional debt advice than men as new figures show that they could benefit most from debt solutions such as a Debt Management Plan or an IVA.

New research by the Insolvency Service has found that the number of bankruptcies amongst British women has increased almost fivefold in the last ten years, with a 28 per cent increase in the last year alone.

Experts are divided on what is behind the trend, but some have suggested that the problem may be partially caused by women trying to emulate the lifestyle of glamorous female media personalities, but without the income to back it up.

This may have led to an increase in unaffordable borrowing on unsecured forms of lending such as credit and store cards, as well as personal loans.

Other reasons for women getting into debt problems are thought to be lower salaries, high unemployment and childcare costs.

Women now account for 40 per cent of all bankruptcies, with 29,680 in 2009, up from just 6042 in 2000.

Younger women in particular are struggling with debt problems, with those aged between 25 and 44 accounting for almost two-thirds of female bankruptcies. In that age group 17,595 declared themselves bankrupt in 2009 compared to 13,575 in 2000.

As well as bankruptcies, women are increasingly turning to other debt solutions such as an Individual Voluntary Arrangement (IVA) or a debt relief order (DRO).

Nigel Millar, business recovery partner with the accounting service Baker Tilly LLP told The Independent that "One thing that stands out is that 58 per cent of women made bankrupt are between the ages of 25 and 44. They are the ones who are spending and incurring credit card debt,"

"Females have much more control than they used to over their own finances; however, they are getting more credit and incurring the consequences."

Graham Horne, deputy chief executive of the Insolvency Service said that "These figures show that more and more young women have levels of debt incurred through trying to maintain lifestyles that are unsustainable,"

"It is critical that all young people are aware of the impact that irresponsible spending can have. Filing for bankruptcy or obtaining a debt relief order should be viewed as a last resort."

If you've built up large amounts of credit or store card debt and are now worried about your ability to meet the repayments then call ClearStart today.

With our range of debt solutions, such as an IVA or a Debt Management Plan, we can help you to solve your debt problems before they get out of hand, helping you look forward to a future without debt. ADNFCR-3106-ID-19908578-ADNFCR