Debt is a general problem no matter your country, language, race, and gender, and it affects everyone the same way, and the solutions are the same to get rid of these debts.
However, in some papers that examine the details of the debts by the statistics of the debts, we see some inequalities in the debts that genders take.
Many reports on the internet states that women have more debt and suffer more financially than men no matter what it is for. For example; according to the Credit Sesame, 68% of women graduate college with debt as compared to 63% men.
The majority of women in the United States have money problems that lead them to struggle with cash until the end of the month, and their paycheck arrives for the next month.
We also see companies like a debt relief company or a debt settlement company saying that their clients are mostly women, and this is interesting data.
We will discuss the reasoning behind this and take a look at how many women are in debt.
Also Read: How To Get Out Of A Car Debt?
- At least 40% of women have a hard time making their cash last until the end of the month.
- The majority of women live under unsecured debts, and at least 60% or more women are in debt.
- The reason for this could be inequality in pay.
- Women, in general, have lower salaries than men in the same position.
Women and Debt
First, it is important to understand if women are in debt more than men and, if so, why women have more debt.
Even though the reason behind it is not really possible to know, all of the data, both from companies and governmental data, shows that at least 40% of women have a hard time making their cash last until the end of the month and they are living paycheck to paycheck.
A report by young women trust reveals that the majority of women live under unsecured debts, and they have a hard time paying those debts back.
So, it is safe to say that at least 60% or more women are in debt, and this is getting higher and higher.
Another statistic by stepchange.org, a debt charity organization, shows that at least 60% of their clients are female.
The biggest thing that contributes to the fact that women have more debt could be the inequality in the payment of the jobs.
Women, in general, has lower salaries than men in the same position most of the time, which leads women to have financial struggle and opt for unsecured debts like credit card bills or not paying their utility bills in time. 1
Female Student Loan Debt
Female students owe more debt than male students; one of the reasons for this gap is that women get paid 74% less than what their male peers get.
- Female student loan debt account for $929 billion.
- Black women own the highest average amount of debt.
- Compared to most men, women of color are 20% more likely to have a student loan.
- Asian women have the lowest amount of student loan debt.
- 58% of all student loan debt is held by women.
- Women take an average of additional two years to repay a student debt.
- The average debt for female student borrowers is 9.6% higher right one year after graduation as compared to males.
- Within the first 12 years of repayment, the average loan debt grows by 13% for black female student borrowers.
- For the same period, the average White woman’s student loan reduces by 28%.
- For white male students, the rate drops by 44%. 2
Women & Credit Card Debt
When it comes to credit card debts, men owe 2% more than women. 65% of women stated that they take a credit cards to build their credit, as compared to 51% of men.
Men also have impulsive credit behavior, as 66% of men in a survey stated that they got a credit card to receive discounts compared to 47% of women.
Also, 30% of men applied for a credit card for the sign-up bonus compared to 18%. 3
To conclude, in many reports that we see on the internet, either by organizations like debt relief companies or debt settlement companies or with governmental statistics, we see higher debts in women and most of them say that they struggle to keep up with their payments until the end of the month, leading them to live paycheck to paycheck.
The reasons behind this are not clear, but some suggestions state that the biggest reason is the inequality in pay.
A woman who is working at the same job as a male gets a lower salary than her peer, which leads her to struggle with her money.
This struggle leads women to resort to debts like credit card bills.
It is estimated that approximately 60% of women are in debt and at least 40% of them struggle to pay those debts altogether.
How to build credit using a credit card?
To build your credit score using your credit, all you need to do is make payments using your card and always pay your bills on time.
Not paying your credit card bills before the due date can have a negative effect on your credit score instead of a positive one. 4
What is the main reason for women having more debt?
The huge pay gap for the same position between males and females is the biggest reason why women owe more debt than men.
What is the average per person credit card debt in America?
As of 2021, the average per-person credit card debt in America is $5,525.
Amit Gupta is the founder of National Planning Cycles, a company that helps startups, individuals, and small businesses with their financial planning. He has a vast amount of experience in the finance sector, having managed Google Play accounts for some of the world’s most successful unicorns. Amit is an expert in his field, and he uses his knowledge to help others achieve their individual goals.
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