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We’re all feeling anxious and overwhelmed by money worries but, new research has revealed that over half of Brits feeling the credit crunch are female. Here, best examines...
As the cost-of-living squeezes harder than ever, from food and energy costs, mortgage rates to rental prices, few of us are immune to financial worries.
It’s not only the expense of dayto-day life that’s affecting so many. The UK is in the grips of a serious, economic crisis, and it’s one that’s disproportionately impacting women.
According to The Money Charity, at the end of July, people in the UK owed £1,843.8 billion, and recent research has revealed that 55 per cent of debtors are female.
Vikki Brownridge is the CEO of StepChange, the UK’s largest debt charity, which is currently supporting more women than men.
‘We’ve seen client volumes rise by almost a fifth year-on-year, with the average owing almost £15,000 when they come to us,’ says Vikki. ‘Women make up the majority of StepChange’s client base – 64 per cent – and they’re more likely to be in a negative budget and have less money at the end of each month than men.’
So why are women falling into and staying in debt, more than men?
‘Debt happens for a range of reasons, but it’s most commonly due to a “life shock” – an unexpected event – such as redundancy, divorce, or death,’ says Vikki.
‘For women, this is exacerbated due to existing economic inequalities, making them less able to cope with a financial shock. However, over the past 18 months, we’ve seen a shift with clients now mostly citing the rising cost of living as the main driver of their debt problems. This is even more pronounced among women contacting StepChange, who appear to be bearing a bigger burden of the rising cost of essentials.
‘Caregiving responsibilities also play a part, while on average, clients at StepChange who are men have a higher average income than women, which widens significantly when it comes to women with children.’
There’s also evidence that financial abuse – now a recognised form of domestic violence – is a contributing factor, with charity Refuge estimating that there is £14.4 billion of debt related to economic abuse in the UK.
Another likely factor is that around 90 per cent of single parents in the UK are women. According to a recent poll by the charity Gingerbread, 76 per cent of single parent families are now in debt, with half of those reporting debts of more than £2,000.
It’s the perfect storm for women struggling to stay afloat financially and, says psychotherapist and anxiety expert Kamalyn Kaur, the impact of debt on mental health is significant.
‘Financial stability is important because it also provides emotional and psychological safety. Worry
