In an effort to match their celebrity idols, women now make up the majority of young bankrupts in Britain, according to a leading accountancy firm.
The report from Wilkins Kennedy said that of all under 24-year-olds going bankrupt, 55 per cent were women – against just 48.3% five years ago. In 2008 there were 1,560 women in this age group that were declared bankrupt compared to 1,250 men.
Anthony Cork, director of Wilkins Kennedy, said: “Over the last decade the pressure on young women to follow the lavish lifestyle of female celebrities has grown immensely. In all seriousness we are told that Paris Hilton and Victoria Beckham are role models to be followed.”
“Five years ago it tended to be young men who got out of their financial depth, but now it is far more likely to be young women who spend irresponsibly. That gap between the genders seems to be growing.”
Added to this is also the urge for more young women to prove their independence. According to figures from the Office of National Statistics, 29% of 20 to 34-year-old men live with their parents compared to only 18% of women in the same age group.
As a result, many young, single women have taken out mortgages or rent committments that eat-up much of their income, which makes them more likely to go bankrupt if they lose their job. They are also more exposed to changes in interest rates, providing further vulnerability.
Debt management experts suggest that young women feel they need to externally appear successful, demonstrating their success with purchases akin to the celebrities they read about in glossy magazines.
Ivan Cooper, Chairman at leading debt management company Chiltern explains: “Usually the difference between celebrities like Paris Hilton or Victoria Beckham and the majority of people, is that the celebs have access to a much larger spending allowance.
“Buying a handbag for £1000 is much easier if you are worth hundreds of millions of pounds, whereas for many women this would be a whole month’s worth of income.
“Unfortunately young (and often impressionable) women feel they need the latest dress, shoes or accessories to feel complete, but it is a short-term gain that leaves long-term debt problems if it can’t be repaid.”
