Female Insolvencies Continue To Rise...

In the third quarter of 2011, 14,827 women were declared bankrupt, obtained a debt relief order or took out an individual voluntary arrangement, with females making up 48% of all personal insolvencies.

Women now outnumber men in both the 18 to 25 and 26 to 35-year-old age groups, indicating that the trend is set to continue.

A culture of consumption and "bankruptcy role models", such as Kerry Katona, have been blamed for a rise in female money troubles, although the picture is complex, not least because lenders see women as an increasingly lucrative market as they continue to gain their financial independence.

However, the most recent rise in female insolvencies began in the second quarter of 2009 and the figures have climbed steadily ever since, suggesting that the financial crisis has hit women's pockets harder than men's.

More women than men were made redundant, and some studies have claimed that government spending cuts instituted during the recovery period have a disproportionate effect on single parents – nine out of ten of whom are female.

Also, more women than men work part-time, and in a downturn, part-time and shift workers are more likely to be cut.

According to the Fawcett Society, which campaigns for women's rights, female unemployment is at its highest in more than 20 years.

Just over one million women are currently jobless, a level last seen in May 1988, with more than half-a-million claiming job seekers allowance, the highest figure since April 1996.

Darren Perks A Debt Advisor at Integrity commented "It`s time for everyone to pay serious attention to their spending habits. Short-term debt solutions may seem an efficient way to fund spending, but they can also lead to long-term debt if not managed properly.

"We are seeing a daily increase in people seeking debt help and advice, the 'WAG" effect is certainly very much a real thing and it is taking it's toll on people abusing their credit cards thinking that it won't matter. But in reality it does, and then they get hit with high interest and charges which means they start to miss repayments and fall behind with the credit companies. This ultimatley leads to their debts spiralling out of control".

"We all use credit cards, often on a daily basis, but how can we be sure that we are not becoming over committed?"

"A simple test is to not use your credit cards for a whole month, make the minimum payments on them, after you have paid all your other fixed costs such as mortgage, Council tax, utility bills, loans etc etc and then see if you can get through the month by just using the cash left from your wages. If you can get through the month without dipping into your credit cards then your finances are probably sound, however if you run out of cash part way through the month and have to use your cards for everyday expenses such as food and petrol then you need to take a long close look at your finances".

"Start by completing a simple household income and expenditure form [excluding unsecured debt repayments] and if the money left over each month is not enough to cover your minimum contractual payments on your unsecured debt repayments then you really need to take action sooner rather than later".

Call Integrity now on 01743 272900 for professional, fair and impartial advice.

(Author: Darren Perks)

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