Back in July we commented on the increase in bankruptcies amongst women based on figures released at the time by the Insolvency Service. Last week the Daily Mail reported on a further increase in women with debt problems.

The article included lots of stats and figures to show that the number of women in debt in the UK is at an all-time high and generally gave the impression that women can’t manage their money. If you’ve read any of my previous blog posts, such as my comment on “shopaholic britain” then you’ll know that I disagree with the generalisations that women end up in debt because they spend so much money on shoes and handbags!

However judging from some of the comments left on the Daily Mail’s article, not everyone shares my view:

Women and the youth of today no common sense or money control.

It probably hits them hardest because they are not very good at handing money

200 pairs of shoes? You don’t need them love

Sorry, but I have zero sympathy

Sadly lots of people feel this way towards women in debt, when actually the stereotypical “shoes and handbags” types of people in debt are a minority. Most of the people we speak to have debt problems due a change in their life circumstances, such as the break-up of a relationship, redundancy, or pregnancy – which we all know involves both men and women!

It’s also funny how you never see articles about men being in debt because of their spending habits. As an example to address the balance let’s take look at a favourite male pastime: football.
Virgin Money have been collecting data from 2006 onwards for their Football Fans’ Inflation Index and last year they published a report which showed that one in every five (20%) football fans is having to borrow money as a direct result of supporting their team.

That’s just one example and I won’t turn this into a men vs women debate on who has the most debt. I just wanted to point out that women can be treated a little unfairly when it comes to debt issues and making judgements, so the next time you see a headline about “women in debt” don’t automatically jump to the shoes-and-handbags conclusion.

A few months ago, controversial Daily Mail columnist Liz Jones poured her heart out to the world about her debt problems. She’s been talking about her debts again this week and making some generalisations about women in the UK and their spending habits.

After Liz wrote about her debt problems in May this year, she claims to have been inundated with letters and emails from her readers offering money and help. Not surprisingly she received a lot of criticism and I blogged about whether she was a villian or a voice for people in debt.

Her most recent article on debt was entitled “Why are so many smart women so bad with money?” in which she talked about some of female friends in the same situation:

One is a businesswoman who employs dozens of workers, another is a married woman with several children, and a third is a high-profile woman on TV. They all confessed they live in fear of bills

Here are some of the views people have expressed on her article about “smart women” and debt:

The sad thing is that Liz makes some valid points, but the public persona she has created for herself outshines this article, which is laced with photos of Liz on her extravagant holidays and wearing designer dresses.

Personally, I agree with her that issues such as the impact of divorce women’s finances, taking time off work to have children, and a concern which ClearDebt is all too aware of: how people who have been in debt become financially untouchable or “funts“, have had an effect on the number of women with debt problems.

Liz even explains how an IVA can help someone in debt – something I’ve seen in action since I joined the ClearDebt team.

Do you think Liz Jones is a good representative for people in debt? Vote in our poll and a leave a comment to let us know your views!

As women’s spending habits are hit by the media again this week, we ask are women in the UK really all shopaholics?

Research carried out by comparison site uSwitch reported that four million women are shopaholics with average debts of £3,353. This time however, men’s spending habits were also looked at and the report found that there a three million male shopaholics with average debts of £3,425 each.

uSwitch’s Ann Robinson blamed “today’s celebrity obsessed society” for the shopaholic behaviour, but as we’ve discussed in some of our recent blogs, such as our discussion of the increase in bankruptcy among women, it’s all too easy to make a sweeping statement about women copying the celebrity lifestyle at the expense of credit cards and overdrafts without looking at the bigger picture.

Sure, there are lots of irresponsible spenders out there, both male and female, but there are also a lot of people who are making conscious efforts to manage their finances and deal with their debt problems. We know because we’re helping them to do so with IVAs and Debt Management Plans!

A few months ago ClearDebt’s Jacqueline Cohen took part in a feature for the Daily Mirror where they looked at the cost of a woman’s daily wardrobe. We ran a poll along with that blog, with somewhat of a smaller sample size, and found 65% of voters said they had cut down on their shopping habits since the start of the recession.

I’m proud to say I’m part of that 65% and even though there are still some shopping urges I can’t resist, on the whole, when I’m out shopping I find myself putting things back before I make it to the till! Another example is Piper from Frugal living, who has been blogging about her experiences of shopping on a budget.

Are you a reformed shopaholic? What are your top tips for resisting the urge to splurge? Leave a comment and let us know!

Alternatively if you’re a shopaholic who needs help with their debts, take the ClearDebt analyser and see what debt management solutions we can offer you:

Recently figures confirmed it will take 57 years for women in the workplace to be earning the same amount as men. ClearDebt’s Marketing Manager, Jacqueline Cohen, decided to take a closer look at the statistics for women in debt and has the following views on the gender pay gap.

As a woman, I readily admit this particular topic of debate has always been of great interest to me.

Before I begin, there are a few things I need to confess – particualrly to any of our male readers:
- I’m a feminist in the sense I believe women should be strong, ambitious characters – just as men should be
- I believe in equal rights
- I believe and strive for idealism but accept it’s often unachievable
- I believe behind every great man, there is often a great woman, but find myself wondering why she’s never in front?

Yesterday the national press confirmed the majority of working women earn 25% less than men. When talking in the office about this statsitic, we decided to look at ClearDebt’s own client data and see how it compared.

Surprisingly, it actually showed women in debt as higher earners than men – until – they reached the big 4-0.  Now I know the saying tells us life begins at 40, but it seems for many women, it actually goes downhill from there!  According to our data, women in debt and under 30 earn, after tax, an average annual pay of £19,200.  That means they take home nearly £1,600 more a year than men the same age who are also in debt.  Interestingly, the research also shows that although we may earn more, indebted women under 30 owe an average of 121% of their take home salary, whilst men of the same group spend an average of 141% of their lower take home salary.

This in itself implies a few things…particualrly from a woman (myself), working in a male driven industry.

The reason I believe women earn more in the first few years of their career is, for any woman with ambition, this is when you have to make your mark.  As a woman, particularly when working in a male industry, you need to be clear of your career path and leave little, if any room for error.  Whatever we’d like to believe, sexism and gender sterotypes still exist and that often means having to prove ourselves to be at least equal to our male counterparts in order to get the salary and position within a company we are aiming for.

The debt issue, is a tricky one.  No matter how idealistic we like to be, the truth is, image is still everything, most of the time.  As a society, our “leaders” and “icons” are not necessarily business or political ones, but more often than not, celebrities.  And the notion that the better we look, the more successful we become, is often why women spend so much time and money purchasing clothes, shoes and handbags – not to mention the hair and make up products we buy into.  As much as we’d all like to say image doesn’t matter in the workplace – I think, deep down, we know it does.  There – I’ve said it.

Men on the other hand, spend more of their take home pay, but on what?  Certainly not hair and make up ;)  I suspect, the key difference is, whilst women believe  “image” and connotation of “success” is in how you look, many men beleive it’s in what you have.  So whilst we buy many lower cost items, men will spend their hard earned cash on high value status goods such as electronics, game consoles, cameras, flat screen TVs and of course, cars – so naturally, at the end of the month, their expenditure bill is higher.

So – so far, I’ve explained my reasons why I think women earn more in the first few years of their career – because, right or wrong, they have to work harder, be in the office more, and generally be more efficient than men in the same workplace, if they want to get ahead.

I’ve also addressed where I think the debt comes from and how it accounts for the expenditure that builds up – because, particualrly for women – image = success; at least it does in the movies ;)

But why then, does it all change when they hit 40?  In my opinion, the answer is childcare.

Women, in most cases, have children in their late 20′s/early 30′s.  If they go back to work, they normally adapt their hours slightly but can still, in the early years, do an 8 hour day.  Still – it’s not the 10 or 12 hour days they used to put in before.  And then as the kids get older and start school – who picks them up?  I don’t see many dads cutting their working hours to collect the children from school at 3.30pm?  Do you?  So the women do it – along with their job.  And so…starts the downhill struggle – one which they will undoubtedly lose.

Although I can argue a working mum’s day starts at 6.30am and doesn’t often finish until 9/10pm at night – the difference is,  men can stay in the office during those hours and enjoy the pay rise which rewards it.  Menawhile, women  juggle smelly nappies and read bedtime stories – which although offers its own rewards, doesn’t come with salary projections.  Honest.

By the time we reach the age of retirement, men are bringing home a whopping £600 more than women.

Despite having the right to vote since 1907, it seems we still have a long way to go before we’re rewarded in the workplace for the quality of work we do, rather than the quantity.  How many times does a man need to be told, it’s not what you do, it’s how well you do it ;)

If you need debt advice, why not call ClearDebt on 0800 019 2095 or complete our online debt analyser and one of our advisors will call you:

The Independent recently published an article stating that debt is a feminist issue. Figures released by the Insolvency Service showed a vast increase in women who were declared insolvent from 6,042 in 2000 to 29,680 women in 2009.

There were two main reasons put forward to try and explain the increase in women facing bankruptcy. The first, and perhaps the most obvious reason, was irresponsible spending: designer clothes, handbags and shoes, holidays abroad, expensive beauty treatments and everything else a woman would need to try and emulate the her favourite celebrity. The other viewpoint, is that more women are finding themselves in debt because of

“unemployment, pay inequality and childcare costs”.

Two ClearDebt clients, Kimberlea and Laura, had their stories featured in the article. Both told of how they came to be in debt and how they were managing their finances now. From the comments left on the article they were judged, quite harshly in some cases, as being in debt solely due to irresponsible spending.

Whilst on the outside this may seem the case, the article didn’t really look into the pressures faced by many young women today which could lead to this so-called irresponsible spending. It’s hard to avoid witnessing the celebrity lifestyle which has been thrust upon us, from the gossip magazines and celebrity reality tv shows to celebrity-endorsed “must-have” products. When you consider this whole culture of celebrity you can get a clearer view of the pressures many women face, to look good, to be socialising in the right places and even to be eating the right foods. It’s easy to see how young women can fall into the trap of buying on credit cards and getting into debt to fit in with their peers.

There’s also the issue of the difference between living costs between men and women. The US based Consumer Reports Magazine, conducted a survery looking at the prices of bathroom products aimed at men and women. They found that the women’s equivalent of the same product could be up to 50% more expensive than the men’s product. When research like this is coupled with the issue of the gender pay gap, you can see a pattern of women having to spend more than men for everyday living, and yet earning less money than men. Not quite irresponsible spending after all.

Regardless of the reasons behind the increase in bankruptcy among women, the best thing we can advise for anyone, male or female, old or young, who is worried about their debts is to get help as soon as possible. Get in touch on 0800 019 2095 or take ClearDebt’s online debt analyser to find out your options.