Twenty and Thirty-something Women Face Higher Debt Costs
Younger people in particular have run into debt in the opening years of the new millennium and are now facing drastically higher debt costs as we end the first decade. As the new economic recessionary environment has slowly enveloped individuals, they in turn have found themselves turning to short-term borrowing such as credit cards and overdrafts to fund their lifestyles as their disposable income has shrunk.
Since August 2008, the number of 25 to 34 year olds who are spending half of their pay packets on servicing debt and making repayments has doubled to 10% of that population demographic. The majority are young women and the latest research is courtesy of CallCredit who provide online credit report information. In total 14% of young women are in this debt hell and the research is backed up by another leading credit information bureau – Equifax.
Equifax research conducted prior to Christmas 2008 shows that 38% of women had been refused credit in the prior six months and a staggering 34% responded they had no idea how they would pay an unexpected large bill if one landed on the doormat. Returning to the CallCredit data, the survey respondents believed that the situation was only going to deteriorate in 2009.
The continuing compounding of the debt spiral requires careful assessment and professional management if the individual is to finally escape from the clutches of short-term, high interest credit. By consulting with an independent credit management professional; this will establish the true financial position and demonstrate what the monthly debt servicing capacity truly is in order to arrange a sensible and realistic debt repayment plan.
For those who require more than simple budgeting and repayment negotiation with existing lenders, they should also consider a consolidation loan while more severe cases should educate themselves on their options such as an IVA or bankruptcy.
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