According to figures from insolvency group, RSM Tenon, the increase in the number of females entering into Bankruptcy has continued to climb, with now as many women as men unable to manage their finances.
The online Tracker warning system owned by RSM Tenon, has shown that in the second quarter of 2012, there were exactly the same numbers of men and women becoming insolvent. The figures relate to 420 individuals entering into insolvency every single day, 210 men and 210 women.
The record low interest rates in the UK have helped many people to avoid becoming insolvent and overall rates are expected to drop from 113,000 last year, to just over 100,000 across England and Wales during 2012. However, this trend has not been seen amongst females. Four years ago, just 43% of insolvencies involved women, but this figure has jumped to 50%.
The head of personal insolvency at RSM Tenon, Mark Sands, said that women were far more vulnerable than men in the current climate and seemed to be feeling the effects of the downturn much more. Mr Sands also said that females were encountering significant debt problems far earlier in life than men, with 28% of those who became insolvent aged under 35, compared to just 18% of men. Mr Sands said one possible reason could be the cuts in the public sector, which employs more women than men overall.
However, it wasn’t just the sexes that experienced a difference in insolvency rates. The statistics from RSM Tenon pointed to a north south divide. In London, 17 out of every 10,000 adults needed an insolvency intervention, but in the north east, this number climbed to 34, double the rates of those in the capital.