Women account for almost 50% of all insolvencies in England and Wales for the first time in history, a new report has revealed.
Growing fears from industry experts highlights the fact that women have paid the biggest price as a result of the recession. More than one million women in the UK are unemployed, with figures growing on a daily basis by up to 500 per day. With little sign of improvement, there are additional warnings of worse to come.
The report, from accountancy firm RSM Tenon, found that the general number of personal insolvencies across the UK has fallen. This marks the fifth successive quarter of year on year quarterly falls.
However, women make up 65% of people aged 18 to 25 who are personally insolvent. They also represent 54% of people aged 26 to 35 in the same situation.
Mark Sands, Head of Personal Insolvency at RSM Tenon said: ìThis analysis marks a bleak day for female credit ratings up and down the UK. Women are now responsible for virtually half of all personal insolvencies generally across all age groups, with younger women rapidly eclipsing the number of younger insolvent men. This is despite the total of personal insolvencies falling across the UK.
ìWhether women today are struggling more than ever to survive against the current bleak economic climate, or are simply burying their head in the sand, this latest example of sex inequality should serve as a wake-up call to them.î
The number of women falling into debt is increasing as many rely on credit cards and loans to cover the cost of everyday expenses. The number of women who work part-time compared to men has also had a severe impact on female debt levels.
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