As the UK economy continues to struggle it has been demonstrated that women are becoming increasingly exposed to serious debt issues. Serious debt issues often result in ‘insolvency’, the blanket term encompassing measures such as bankruptcy, sequestration, an IVA, a trust deed or a debt relief order.

The report by RSM Tenon (a DMP and IVA provider represented in our debt management forum by Dean Byron) states that in the second quarter of 2011 almost half (48%) of those becoming insolvent were women. In 2002 it is believed the proportion was less than a third (32%).

These figures total just fewer than 15,000 women in England, Wales and Northern Ireland becoming insolvent in a single three-month period. It is believed several thousand women may have also become bankrupt or started a trust deed in Scotland during the same period.

Why are more women experiencing insolvency issues? Thoughts vary on this subject but many people agree that women have been more vulnerable to the impact of the recession and government cutbacks and benefit changes, leaving them more inclined to need the assistance of a DMP further down the line. Part-time workers have been especially at-risk of redundancy; the part-time workforce is primarily female. 90% of single parents are women and it’s understood that many single parents have been affected by changes to benefits access and tax credits.

Any woman who is worried about her debt should seek professional debt advice at the earliest opportunity. Debt management problems tend to fester and worsen when they aren’t tackled head-on which in the longer-term can result in a more serious outcome. For example, a DMP is an informal way to deal with debts without having to resort to insolvency. However, a DMP may no longer be suitable if debts have grown and the repayment schedule has therefore become excessive.

Other debt management options include insolvency measures such as bankruptcy, an IVA or a debt relief order. These will typically be used where debts are higher, there is a limited capacity to repay anything towards the debts, or where a DMP term isn’t feasible.

Finding the right advice isn’t easy for anyone struggling with debt. Hundreds of unqualified debt advisers work, quite legally, in the UK. There is no requirement for a debt adviser to be qualified despite the serious nature of the work that they conduct. However, professional debt management and debt advice exams do exist that equip those who hold them to offer balanced and knowledgeable debt management advice.

Debt management advice should also be taken from multiple sources so you are sure about any decisions you intend to make before you go ahead and make them.

If you’re currently concerned about personal debt issues you may wish to visit our DMP forum, where dedicated experts are on hand to answer your DMP questions in a professional and discrete online environment.

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