More Young Women in Debt are Made Bankrupt
Insolvencies Rise as Status- Conscious Women Under 24 Spend More
Jul 4, 2009
In an analysis of the 2008 bankruptcy figures, leading UK chartered accountants and insolvency practitioner, Wilkins Kennedy says the majority of young bankrupts (under 24) in England and Wales are now women, up by 7% in 2008 to 55% of young people.
Anthony Cork, Director at Wilkins Kennedy commenting on the figures said: “Five years ago it tended to be young men who got out of their financial depth but now it’s far more likely to be young women who spend irresponsibility…”
Cork cited a number of reasons for the growing gap between genders, for example the pressures on status-conscious young women to keep abreast of the ever-changing world of fashion and celebrity. Cork said: “In all seriousness we are told that Paris Hilton and Victoria Beckham are role models to be followed.”
He made the point that during 2008 the increasing availability of credit fueled a growth in consumer spending for young women. Designer clothes and jewelry were all part of the equation. It seems for example that the average price of a handbag in Selfridges rose to a staggering £800.
Debt Advice
He also argued that more young women than young men had their own homes and consequently left themselves more vulnerable to increases in interest rates and unemployment and for some this subsequently meant the need to seek professional debt advice.
The National Statistics Office in their Social Trends Statistics show in the fourth quarter of 2008, 1.8 million men in the UK aged 20 to 34 lived with parents compared with 1.1 million young women in the same age group.
Bankruptcy Help
Those facing bankruptcy can of course go directly to a chartered accountant for help but there are a number of free and independent sources of debt advice that will offer guidance in what is a stressful situation.
- The Consumer Credit Counselling Service (CCCS) is a registered charity and offers confidential advice to anyone with debt problems or is considering bankruptcy.
- The UK Insolvency Helpline is a national debt advisory and dept management service, which will give free and independent advice not only on bankruptcy but also on possible alternatives to bankruptcy like an Individual voluntary Arrangement (IVA) in England and Wales, in Scotland a Protected Trust Deed.
- The Money Advice Trust is a free and independent source of confidential advice for people with personal debt problems.
The information in this short article is not exhaustive and does not constitute financial advice.
Sources:
Wilkins Kennedy, Majority of young bankrupts are women, 19 June, 2009
Insolvency Service, Insolvencies 2008, 1 May 2009
National Office of Statistics, Social Trends – Households and families, 15 April 2009
Money Advice Trust website
CCCS website
UK Insolvency Helpline website
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