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Young women struggling to stave off insolvency 18 October 2016

Young women made up the majority of personal insolvencies last year and the figures have been rising since 2010, according to research from Moore Stephens.

The accountancy firm found women made up 65 percent of personal insolvencies amongst the under 25s for the year ending December 2015.

Using data from the Insolvency Service the firm found women also accounted for more than 50 percent of personal insolvencies amongst 25 to 34-year-olds.

The accountancy firm said: “The number of insolvencies amongst young women continues to outstrip men.”

Moore Stephens said the gender pay gap may be partially to blame because women earn nearly 20 percent less than men on average, but face the same or higher expenses.

The company said this can lead to women taking on higher levels of credit card debt in order to make ends meet.

Data from the Office for National Statistics (ONS) shows that one in three young men still live at home with parents compared to just one in five young women.

Moore Stephens has, therefore, said young women spend more on accommodation.

Jeremy Willmont, head of restructuring and insolvency at Moore Stephens, said women are a particular target for payday lenders.

He said these lenders encourage women to take out high interest loans in order to pay for luxuries they otherwise couldn’t afford.

Willmont added: “Nobody is saying that young women are less responsible than young men.

“However, there is even a chance that these statistics may even up in the future as more lifestyle products are marketed at young men.”



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