Number of Women Suffering With Severe Bad Credit Debt Set to Reach Record Levels in 2011
For a fortunate proportion of the UK, hitting the sales with a credit card in hand is not the start of a financial crisis but simply the catalyst for an austerity drive over the forthcoming months.
But experts are warning that 2011 will see record numbers of women facing the reality of finding themselves with severe bad credit debt.
“But only a decade ago, female insolvency was extremely rare which highlights a huge shift in financial attitude.”
It has been estimated that British shoppers will owe around £150 million on credit cards this year as a direct result of post-Christmas bargain hunting.
Mark Sands, an insolvency expert at accountancy firm RSM Tenon, said; “Spending habits and attitudes to debt have changed and there will be a long-term trend for higher female insolvencies.”
Mr Sands estimated that around 63,000 women became insolvent last year, which equates to 172 women a day.
In the 18-25 age group, female bad credit debtors heavily outnumber their male counterparts, with more than 5,000 young women falling into bad credit debt last year, compared with just over 3,000 young men.
Louise Brittain, an insolvency specialist at leading accountant Deloitte, said; “There are also a lot of women who don’t show up in these figures, but are scrabbling to make the minimum payments.”
Since the economic boom, women have altered how they manage their household budget and instead of frugally watching their pennies, the turn of the century and easy credit has brought on an era of conscience-free spending.
As women became financially independent, lenders started targeting them as they were believed to be a lucrative market, with designer shoes and handbags more accessible with a credit card or bad credit loan.
“Some women become accustomed to a certain lifestyle and want to maintain that, even if their disposable income drops,” said Mr James of Bad Credit Loans 4 You.
“Many have partners or husbands who have no idea about the number of credit cards they have or the size of their bad credit debt.”
Any debt owed on credit cards or store cards can easily spiral out of control as some charge sky-high interest rates.
Despite the Bank of England keeping the base rate at a record low for over 20 months, store cards often charge more than 20% APR, with Warehouse adding almost 30%.
If you have an interest free period on your credit card it can save you from falling in to bad credit debt and allow you to pay off the debt without incurring extra costs.
“Paying for your purchases with cash can have a real effect on how much you spend as it’s more difficult to get carried away,” stated Mr James of Bad Credit Loans 4 You.
“Paying with your debit card can also help ensure you don’t go too overboard as the money is taken from you straight away, instead of paying at a later date.”
Mr James of Bad Credit Loans 4 You offered some top tips for those with bad credit debt:
- It’s important you discuss your money worries as talking it through will help release the burden.
- Don’t go to your bank for advice as they will be more inclined to look after their own interests. nationaldebtline.co.uk, citizensadvice.org.uk, occs.co.uk are all specialists within the bad credit debt sector and will offer impartial advice.
- Create a list filled with an honest account of everything you owe and each day log what you spend your money on, chances are a good chunk will be on things you don’t need.
- Sift through your drawers and cupboards to find items you no longer need or want and sell them on eBay or a local Gumtree site. Even if you only make a few pounds its better than the belongings just gathering dust and the cash can go towards clearing your bad credit debt and lower the debt consolidation loan for bad credit you may need.
- Do some free research into your options direct.gov.uk offers simple explanations and guidance surrounding repayment plans, debt management and credit laws.
- Mark in your diary a date to ring your bank / creditors and deal with your debt. Keeping in contact with them and making the first step will help them see your circumstances in a more positive light than if you just ignore their calls.
Look out for further press releases on "help with debt"
Bad Credit Loans 4 You helps out people who fear they have been blacklisted because of past bad credit history which could include CCJ’s and defaults, arrears, late credit card payments or repossession.
Bad Credit Loans 4 You holds a Consumer Credit Licence issued by the Office of Fair Trading.
Bad Credit Loans 4 You is also covered by the Financial Ombudsman.
Bad Credit Loans 4 You is also registered with the Information Commissioner’s Office for Data Protection.
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Loans 4 You of London Ltd
Innovation Centre
Monks Brook
PO30 5WB
United Kingdom
Tel: 0800 011 4503
Bad Credit Loans 4 You was formed in order to ensure people with bad credit had access to specialist help in securing the bad credit loans they need.
From its UK head office in Monks Brook, Loans 4 You operates across Britain, sourcing bad credit loans for people with bad credit.
Bad Credit Loans 4 You holds a Consumer Credit Licence issued by the Office of Fair Trading.
Bad Credit Loans 4 You is also covered by the Financial Ombudsman.
Bad Credit Loans 4 You is also registered with the Information Commissioner’s Office for Data Protection.
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Bad Credit Loans 4 You has a senior management team with over 50 years collective experience providing vital knowledge of the bad credit loans sector & helping those with bad credit rating problems.
Our mission is to aid people who have been discriminated against because of their bad credit loans problems. We assess bad credit loans applications on your current budget and ability to repay bad credit loans, not just your bad credit history.
