StepChange debt charity has just revealed that over 60% of their new clients are female. In comparison, just under 50% of Trust Deed Scotland’s customers identify as female.
When discussing women with unaffordable debt in Scotland, there are many factors at play.
It does not necessarily mean that women struggle with unaffordable debt more than men. Indeed, the cost of living crisis is affecting many people across Scotland at the moment, with more people searching for Scottish Debt Help than ever before.
It could mean that women are more open to accepting help and support, or more likely to recognise when they are in a situation that is unaffordable.
Studies suggest that men are more likely to have a higher amount of debt, but that there is a higher number of women that are in debt.
There is no sole reason why people find themselves in debt, but it’s clear that debt is something that many women are battling with.
Gender Pay Gap
The Gender Pay Gap (GPG) is often one of the first things that people think of when discussing the finance differences between men and women.
The GPG is not the case of women being hired at a lower salary to men, or women and men being paid differently in the same roles.
Rather, it is the difference in the average earnings of male and female employees.
It is a complex issue that can be attributed to a few reasons:
- Fewer women choose high paying careers
- A higher number of women work part-time
- Fewer women compete for promotions and raises
- Taking career breaks to raise a family
The current GPG in the UK is estimated to be around 15%.
Lower earners may have no alternative option other than taking out further credit or unfavourable loans to deal with unexpected payments or a rise in everyday costs.
The Motherhood Penalty
Women are more likely to have gaps in their employment or work part-time due to bearing and raising children.
It’s estimated that the Motherhood Penalty makes up 80% of the GPG, which could explain why it is still very much a real issue in the UK.
Time away from careers can impact promotions, pay rises, or the ability to improve learning and skills.
Of the almost 3 million single parents in the UK, it’s estimated that 90% of them are women.
It’s worth noting that the national average salary for single mothers in £28,794.
This equates to £1,966 a month after tax, yet the average cost of full-time childcare is £1,079 a month in Scotland.
This is a clear reason as to why many women give up work, work part-time, or take on lower-paying roles that offer more flexibility.
Economic abuse is a common form of abuse in intimate and family relationships.
Both men and women can be victims of domestic abuse.
Unfortunately, 1 in 4 women in the UK will experience an abusive relationship at some point in their lives.
In recent years, there has been increased focus on economic abuse.
Economic abuse involves the control of a partner or ex-partner’s money, finances, and things that money can buy.
Some examples of economic abuse are:-
- Controlling your access to money
- Taking out credit in your name, without your permission
- Taking your paycheck
- Preventing your work or education opportunities
- Forcing you to justify every purchase made
- Insisting all bills are in your name, leaving you eligible for any arrears
- Stealing from you
- Refusal to contribute to household costs
Economic abuse can plunge the victim into debt or prevent them from being able to get out of pre-existing debt.
If you, or someone you know is dealing with economic abuse, below are some places to seek help and support.
If you are in immediate danger, please call the police on 999.
Domestic Abuse and Forced Marriage Helpline (Scotland) – 0800 027 1234
Men’s Advice Line – 0808 801 0327
Debt Help Available
For those who have found themselves with unaffordable debt, there are solutions that can help.
Here at Trust Deed Scotland® we provide advice on all formal debt solutions that are available in Scotland.
Our experienced debt advisers will be able to discuss your situation and provide you with information on all the solutions that would suit your individual circumstances so that you can make an informed decision on what is right for you.
A Trust Deed is an example of one of the solutions that we offer.
A Trust Deed provides legal protection from the people that you owe money to, while freezing interest and charges. It allows you to consolidate all of your debt repayments into just one affordable payment for a typical period of four years. At the end of the minimum 48-month repayment term, the remainder of the debt is legally written off.
Another example of a debt solution that we offer is the Debt Arrangement Scheme (DAS). The DAS, like a Trust Deed, allows you to consolidate your debt into one affordable monthly payment while freezing interest and charges. The difference is that you would pay that affordable payment until the full debt amount is paid.
If you think that a debt solution may be the right option for you, you can try either our WhatsApp debt advice service or Livechat debt advice services, or quickly check your options using our Trust Deed Wizard tool. Call us on 0141 221 0999.