Articles about Credit Cards

Credit Cards for Women in the UK Threaten Bankruptcy?

According to the results of recent research, conducted in the UK, the number of women who file for bankruptcy has gone up by one third over the past five years.

Despite fight against sex discrimination, equal rights and freedoms for men and women, feminist movement, women's growing financial independence, etc. the fair sex still earns less than men. That is a fact. But women use credit cards as frequently as men, or even more often. This contradiction is one of the reasons for women file for bankruptcy. The statistics shows that about 42% of UK bankrupts are female. Learn other reasons leading women to bankruptcy.

Keith Stevens, insolvency partner working at Wilkins Kennedy, an accountants company, says that the gap between men and women's incomes keeps narrowing. But women tend to take on more financial risk due to their spending habits. The bankruptcy consultant also noted that a large part of women bankrupts are single young women.

Though credit card debt is traditionally considered to be a male thing, women are catching up with men really fast in owing money. And these days it is pretty hard to shock someone with a five or even six-figure debt on a woman's bank card.

According to Wilkins Kennedy, the surveys show that women prefer to apply for credit offers that come with zero interest promotional period. This can be a 0% APR on purchases or 0% APR on balance transfers as well. Pretty often women try to fight the consequences of credit debt, not its origin.

The origin and another reason for women accumulating significant credit debt is irrational money moves or lavish spending habits.

Living within their means is sometimes very difficult even for the most experienced in managing financing women. Women are more prone to impulse buying, they are more moody than men, and you would barely argue that there are more women-shopaholics than men-shopaholics. The fair sex is more likely to open a new credit account and buy what they want instead of trying to adjust their standards of living to their income level.

Another factor of women bankrupts rise is the increase in number of female mortgage borrowers. The study conducted by Halifax shows that the amount of new home loans given to single women is nearly twice bigger that it was 20 years ago. And this accounts for almost one quarter of the total home loan market.

National Savings & Investments has recently carried out a survey that revealed British saving habits. According to its results, UK women tend to save less than British men. And with smaller amounts of emergency funds it is really easy to get to a debt spiral.

These are the major reasons for female UK credit card holders to end up in filing for bankruptcy. But are there escape ways? How can a single woman with average income get out of the debtor's prison without filing for bankruptcy?

There are some general rules every car holder can follow to stay away from bankruptcy. Balance transfer cards are a great tool in consolidating and eliminating credit card debt. Make sure you qualify for one and just fill out an online application, for instance. It is safe, fast and easy. Think about getting a new card with more appropriate terms. Choose the one that will become your best card and will bring you maximum benefit. Consider getting a low APR card. This will help you save on interest. Check a few credit companies and find the one that suits you the most.

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