Women are relying on credit to fund their lives, leaving many vulnerable to a cycle of debt, and mental and physical health problems, a new report entitled Women and Debt has warned.
It found that debt levels are rising among women, as lower incomes and family breakdowns force almost 70% to borrow money to pay for lifestyle choices, such as holidays and clothes, or to cover essentials such as food, heating and housing.
The study by Debt Advisory Centre, which examined the attitudes to debt and spending of 2,500 women, found that 1 in 10 women has at least £10,000 of debt. On average, women now have £4,235 of unsecured credit, with the highest levels of debt among those under 45.
Additional data compiled by Debt Advisory Centre shows there has been a fivefold increase in the proportion of young females seeking help with problem debt. In January 2016, 11% of those who approached Debt Advisory Centre for help with debt problems were women aged 18-24, compared with just 2% in January 2013.
Of those women seeking advice in January 2016, 80% owed over £5,000 to their creditors. In the same period of 2013, 67% owed more than £5,000.
Credit cards are by far the most popular way for women to borrow money, with 53% of respondents saying they have at least one credit card. The biggest reason women use a credit card is to pay for housing, utility bills or food shopping, with a quarter of those asked relying on credit cards to cover everyday living costs.
A further 14% have a store card and a similar number pay by instalments when shopping from catalogues. Around 10% of women take cash advances on their credit cards when their regular income runs low.
The Women and Debt report found that where women live has a significant impact on their debt levels. Women in England and Wales have on average £4,500 of debt – around a £1,000 more than their counterparts in Northern Ireland and Scotland.
Women who live in cities have average unsecured borrowings of £5,162, compared with £3,860 for women in suburbia and £3,474 for women in rural areas.
Almost 80% of women with debt say it has had a negative impact on their lives. Two-thirds said their physical and mental health has suffered because of debt stress. Women also report that debt worries have impacted their relationship with their family and friends or has stopped them from getting a job because of a poor credit history.
