Apr 7, 2018
In our latest bankruptcy study, we discovered that over the last 5 years women have been filing for bankruptcy in higher numbers. In 2012, 42% of women filed insolvency and by 2017 that number reached 48%. But, it's not that women are suddenly using more debt. What we've noted from our client data is that female debtors face a unique set of challenges that drive women to turn to debt to makes end meet and then prevent them from being able to keep up with their debt repayment. For example, two thirds of women are either single or divorced and struggle to manage expenses on a single income. Moreover, women earn 9% less than male debtors and are also 3 times more likely to be a single parent than a male debtor.
This is what our average female client looks like. But, why is it that women are increasingly finding themselves in trouble with debt? What can they do to better tackle debt problems in addition to other life challenges? Sharing their expertise today are guests Gail Vaz-Oxlade, Kerry K. Taylor, and our Trustee in the Oshawa office, Alison Petrie, with co-host Sharon Hoyes.
Gail Vaz-Oxlade agrees with our findings that women's life circumstances are completely different from that of men's. That's why she suggests women need a different approach to money:
We need to be far more vigilant about what we're doing because we're going to have to live on whatever we save for a lot longer time.
So, how can women protect themselves in life emergencies?
According to our experts, preparation for sudden life changes is key. Gail believes women need to change their mindset of being caretakers of everyone else and not themselves. She suggests that although there may be love and trust in a marriage, there's no downside to having "his and her" accounts:
If you end up getting divorced, if your husband ends up getting smashed to pieces on the highway, you will be so glad you have money in your own name. I don’t understand why that is a problem.
And if you're a stay-at-home mom, Gail says you should pay all the bills and whatever money is leftover should be split 50/50 between husband and wife.
Kerry Taylor seconds this and believes women should try and "disaster-proof" their lives:
Just because I know bad stuff happens to good people all the time and you need to account for the future as well as the present.
All that and more on today's podcast