Number of women in debt on increase, research finds

THE number of women in debt is on the increase according to the Money Advice and Budgeting Service (MABS).

Almost 10,000 women contacted the financial advice agency this year over debt worries — an increase of 21% on the same nine-month period last year, while 7,836 men used the service.

Credit card, store card, credit union and catalogue debts are all being racked up as more women try to juggle the family finances.

While younger women 18-27 years old have an estimated debt average of €15,000, the largest sector affected by personal debt is married couples aged between 26 and 40, MABS research has indicated.

Main causes of debt are: living beyond means, reduction in household income, relationship breakdowns and poor money management, illness, loss of employment. Other causes include: business failure, underemployment, banking on a windfall or bonus and credit card or store card overuse.

Calls to the MABs helpline rose sharply to 9,500 calls in the first quarter of this year, fell to around 7,000 in the second quarter and began to rise again to just under 8,000 up to September.

Eugene McDarby, chairman of the Debt Management Association of Ireland and chief executive of debt management company Moneyvillage.ie said: “I am not at all surprised by these figures, unemployment has rocketed since the recession, and mortgage arrears have increased.”

He agreed that many women tend to take responsibility for dealing with finance in the home, but urged families in trouble to seek help.

“Being in debt is a very, very stressful situation, these figures show that we are at crisis point and there is an urgent need for Personal Insolvency legislation similar to other modern countries, where if people just cannot pay, due to no fault of their own, they are treated like human beings, are not threatened and dragged into court like a common criminal,” he said.

Michael Culloty, MABS spokesman, said that traditionally women would carry more debt due to dealing with household finances but added that the difference between them and men is “tightening”.

Mr Culloty pointed out that calls to the helpline increase in January and February as people realise that debts do not go away when they “rob Peter to pay Paul.”