Figures released recently by the Chartered Management Institute show women still earn 25% less than men. But, figures from leading UK debt solution company, ClearDebt, shows that when it comes to people with serious debt concerns, younger women earn more and owe less than men of the same age.
- Women under 30 earn more and owe less than men of the same age.
- Men in debt owe, on average, 32% more than women, as a proportion of their take home pay.
- Women’s average unsecured debt is £33,885, whilst men owe almost £9,000 higher at £42,760
- Women with debt issues maximum average monthly income from women in debt is £2,202 (age 40-50), whilst the minimum average is £873 (age 70-80)
- The maximum average monthly income from men in debt is £2,221 (age 40-50), whilst the minimum average is £1468 (age 20-30)
Women under 30 with debt issues earn, after tax, £19,200, on average: They take home nearly £1,600 more a year than do men in the same age range. Women under 30 owe 121% of their take-home pay, whilst men owe 141%.
ClearDebt data also showed that overall, women owe less in credit card balances and unsecured loans (on average, 156% of income) than men (187% of income).
Comparing data from 1,987 people in debt, the research shows younger women with debt concerns earn more than men in the same age groups. However, once they hit 40, their male counterparts take the lead.
ClearDebt Group Marketing Manager, Jacqueline Cohen, comments:
“It’s my experience that, to be taken seriously at work, a woman has to work much harder than her male equivalent – to prove herself and to earn the male pay packet. It looks as if women with debt problems are higher earners whilst they’re in the first few decades of their career – this may reflect the comparatively higher cost of being a woman in a competitive world.
“But, when women get married and have children, things change: We believe that the lower salaries for women in debt (compared with men) when they hit 40 reflects the change in their life situation. They can no longer be first in the office and last out – they have to juggle home life, children and a career and undoubtedly, right or wrong, at this stage, the opportunity is available for men to take over top position on the ladder.”
The research by ClearDebt also shows that, by the time they reach retirement, men in debt bring home an average of £600 per month more than women in the same position. This may substantiate the idea that men of this age have been able to make more of their career opportunities, whilst women may have had to take time out of the rat race and, when returning, do so with a lower earning capacity due to their other commitments.