Studies have revealed that male debtors are responsible for the majority of insolvent debts. Men have been found more likely to be liable for bankruptcies and debt agreements. Personal insolvencies occur when an individual cannot pay back the money that they owe. Here are some of the reasons why both men and women struggle to pay their debts.
Losing a Job or Income
Both males and females are more likely to find themselves struggling to make loan repayments if they lose their income. Without that cash flow this leaves them unable to meet their financial commitments. Their expenses may remain the same but without access to funds this leads to financial hardship. Creditors may allow them to enter a debt agreement to help them pay back more manageable amounts and ultimately avoid bankruptcy.
Relationship Breakdowns
Women are more likely than men to get into financial troubles if there is a relationship or family breakdown. The emotional strain of domestic issues plays a part, however, women could be left off worse financially and unable to repay debts. Divorce is costly and expenses need to be paid whilst court proceedings continue. This could be a matter of months or even years whilst the debts spiral out of control. A debt agreement may be negotiated to get on top of repayments.
Big Spender
Some people simply cannot regulate their spending. Males tend to have higher credit card debts showing a lack of control with their money. Men also tend to have higher mortgages and are more likely to miss a mortgage payment. This shows that males are not as financially savvy and increases the likelihood that they will live beyond their means. Downsizing may be an option in this scenario or exploring personal insolvency agreements for out of control debts.
Unexpected Expenses
By living month-to-month you cover your bills, mortgage and other regular expenses. However, if something unexpected comes up and you don’t have savings in place it could lead you into entering a debt you can’t pay. Males are more likely to avoid budgeting and saving and unexpected expenses can land them in hot water. If you find yourself struggling financially a debt agreement may be the solution.
Big Risks
It’s a fact that males are more likely to gamble than females. Gambling is highly addictive feeding off a competitive nature which can result in the loss of large sums of money. This can lead to unmanageable debts and, if not addressed, bankruptcy.
Both men and women carry debt, however, men are more prone to personal insolvency. Both genders are likely to enter debt agreements following the loss of their income. It’s more probable that women will get into debt following a relationship breakdown. However, men become unable to meet debt repayments due to out of control spending, poor budgeting and gambling. Entering into personal insolvency agreements can help individuals to avoid bankruptcy.
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