Women ‘facing bankruptcy troubles’

An increasing number of women are facing the prospect of bankruptcy, it has been revealed.

New figures from the Insolvency Service revealed the number of females in Britain in this situation has escalated almost five-fold in the last decade.

Moreover, the last year alone has witnessed a rise of 28 per cent.

It means women now account for 40 per cent of all bankruptcies, with numbers swelling from 6,042 in 2000 to 29,680 in 2009.

And the study showed the problem is especially prevalent among younger women, with those aged between 25 and 44 accounting for nearly two-thirds (58 per cent) of female bankruptcies.

The number of people in this age bracket in such a situation rose from 13,575 in 2008 to 17,595 in a matter of just 12 months.

Moreover, it appears an increasing number of females are opting for other forms of debt resolution, such as taking out an individual voluntary agreement.

Graham Horne, deputy chief executive of the Insolvency Service, noted: “These figures show that more and more young women have levels of debt incurred through trying to maintain lifestyles that are unsustainable.”

The industry figure added it is crucial young people of both sexes are firmly aware of the negative impact irresponsible spending can have on their future financial situation and stability.

A recent Scottish Widows Pensions Report found women over the age of 50 may be setting themselves up for a future financial headache by not adequately saving for their retirement.

The investigation discovered just 38 per cent of such individuals are putting aside enough cash for when they finish working.

By James Francis