National Debt Advisors (NDA), one of South Africa’s leading debt solutions providers, says that South African women are more susceptible to debt over rapidly depreciating assets than men.
Women and women who are mothers often bear the brunt of household responsibilities, from cooking meals to helping with homework to organising family events.
While juggling these responsibilities, many mothers also then carry the burden of debt stress.
This was according to the CEO of National Debt Advisors, Charnel Collins, who says that while women are significantly less indebted than men, the type of debt that they have is mostly unsecured debt.
The latest statistics from NDA reveal that over 30% of female consumers on their books have unsecured debt, including payday loans and revolving credit.
She says that this speaks to how women primarily borrow for day-to-day living expenses as opposed to men.
“Single mothers, in particular, face extra pressure when it comes to managing their finances. With limited resources and no second income to rely on, making ends meet can be a constant struggle. It's no wonder that many mums turn to debt to manage their daily expenses and unexpected situations,” says Collins.
Collins highlights the fact that they see a higher number of single men compared to single women in terms of debt review, but women constitute a larger proportion of joint applications.
‘’This suggests that women may be more likely to rely on their partners to help manage their finances, or that they are more proactive in seeking financial assistance.’’
While debt can provide short-term relief, the build-up of credit can become overwhelming and weigh heavily on mums, says Collins.
“Personal loans and credit cards are the next most common forms of debt, with the average woman having up to six open accounts in these categories. Store cards, vehicle finance, overdrafts, and bond payments also contribute to the debt burden of mothers.”
In order to assist mums in overcoming debt, Collins offers some top tips on how to regain control of their finances:
Create a budget:
Start by listing all your income sources and expenses, including debt repayments. This will give you a clear picture of your financial situation and help you identify areas where you can cut back on expenses.
Prioritise debt:
Make a list of all your debts, including interest rates and monthly payments. Focus on paying off high-interest debt first, as this will save you money in the long run.
Consider debt counselling:
If you're struggling to manage your debt, consider seeking professional help. Debt counsellors can negotiate with creditors on your behalf and help you create a debt repayment plan that suits your needs.
Build an emergency fund:
Set aside some money each month for unexpected expenses, such as car repairs or medical bills. This will help you avoid turning to debt in times of crisis.
Seek financial education:
Educate yourself on personal finance and money management. There are many resources available online, such as financial blogs, podcasts, and webinars, that can help you improve your financial literacy.
“It's time we acknowledge the debt stress they often silently carry and support them in navigating their finances,” Collins further said.
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