Young Women The Latest Demographic For Insolvency?

Recent statistics released have indicated that young women are more likely to fall into personal insolvency than their male counterparts of the same age

It appears that women aged between 18 and 24 were almost twice as likely as men in the same age group in 2013 to find themselves suffering financial distress, according to Insolvency Service figures.

The rate of women in this age group becoming insolvent last year in England and Wales was 7.8 for every 10,000 people, compared with a rate of 4.0 for men. In the 25 to 34 age group, the personal insolvency rate for women was 32.8 per 10,000 adults last year, while for men the ratio was 25.6.

However, once both men and women reach the age of 35, the pattern is reversed, and men are more likely to become insolvent than women.

The recent financial problems of reality TV star Kerry Katona, who has been declared bankrupt twice despite high earnings, is a high profile example of the issue.

The Insolvency Service said the gap between the numbers of men and women going insolvent has “narrowed substantially” in recent years. Men are still generally more likely than women to be tipped into insolvency, but the figures are extremely close.

The Insolvency Service said the trend can partly be explained by the introduction of debt relief orders (DROs) in 2009. These are aimed at people in smaller amounts of debt but with no prospect of paying it off. The service said a higher proportion of debtors with DROs are female compared with bankruptcies and individual voluntary arrangements.