Young women IVA seekers have greater debts

From the article:

” A new study offers a grim picture of the number of women going bankrupt or entering a legal repayment plan with creditors, known as an Individual Voluntary Arrangement(IVA).

The figure rose from 11,900 in 2002 to 17,260 last year and is predicted to reach 26,500 this year – a rise of 122%. The figure is expected to top 41,500 by 2007.

Finance expert ClearDebt, which carried out the survey, says the current increase in money troubles, with personal debt topping £1trillion is a problem for men and women of all classes. But the crisis is accelerating most among young women.

The company expects the total number of people going bankrupt or going into an IVA to climb from 46,650 last year to 66,346 this year – a rise of 42%.”

The article goes on to quote ClearDebt as saying: “‘There are some people who have irresponsibly amassed credit.

‘We see a lot of young women with three, four and five credit cards which are spent up to their limit on clothes and holidays.

‘Young women are under greater pressure than men to spend more of their money on looking good, fashions and going out. But the evidence is that many are simply living ahead of their income.’

That’s a simple encapsulation of our view: Had there been space we’d have liked to see added that most people in debt get into arrangements they are confident they can manage – and that they are able to walk the debt tightrope until something big in their life changes – that’s when they fall off and often find it impossible to climb back on again.