Debt can feel mentally, emotionally and financially overwhelming. And research shows that women are more likely to struggle with debt than men. But understanding why this happens and having a plan to tackle it can make a huge difference.
Here’s a breakdown of the factors behind women and debt, and some practical tips to help you take control.
Do Women Struggle With Debt More Than Men?
Money experiences are different for everyone, but studies show that women are disproportionately affected by debt. According to the Money Advice Service, women make up 55% of over-indebted people in the UK and are 14% more likely than men to go insolvent.
Part of the reason could be how women are represented in finance. A Starling report found that women are often portrayed as immature and unsophisticated when it comes to money. This has led to women being represented as financially conservative and less proactive which could discourage them to be less engaged with money. Add in targeted marketing and societal expectations, and the picture becomes clearer.
Women also account for 85% of overall consumer spending, which means marketers are constantly tailoring products and offers to them, sometimes encouraging debt along the way i.e. pushing Buy Now Pay Later at checkout.
Why Women Are More Likely to Be in Debt
There’s no single reason, but several societal and structural factors play a role.
Gender Pay Gap
Women still earn less than men on average. In 2024, the median gender pay gap in the UK was 13.1%, meaning women’s hourly pay is noticeably lower than men’s. Even for full-time roles, women earn around 7% less than men.
Lower pay doesn’t automatically mean you’ll end up in debt, but it can make unexpected costs feel much harder to handle. Life throws curveballs (i.e. a broken boiler, a car repair, or a sudden move) and if your income is lower, you might feel pushed toward using credit cards or short-term loans to cover emergencies.
This is exactly why building an emergency fund is so important. Even a small stash of savings gives you a buffer to deal with surprises without going into debt.
Motherhood
Career breaks for childcare can also have long-term financial effects. Women are more likely to take time off or reduce hours, which can mean slower career progression or lower pay.
Around 90% of single parents are women, and research from StepChange shows that many of these women struggle with debt. Single mums are more likely to have low savings, miss bills, or fall behind on credit repayments. A lot don’t receive full child maintenance either, which leaves them even more financially vulnerable.
Targeted by consumerism
Women are often targeted by Buy Now Pay Later (BNPL) companies and other marketing tactics encouraging unnecessary spending. These offers can make casual debt feel normal or even fashionable. Klarna, for example, has over 10 million UK customers, and the pandemic recession has widened the gender savings gap, which could persist for decades.
If you want to learn more, check out our article: “Buy Now, Pain Later”.
Financial abuse
Financial abuse is another factor. This form of domestic abuse involves a partner controlling or limiting access to finances. In the UK, 7.9% of women experience domestic abuse compared to 4.2% of men. According to Refuge, some patterns include:
- Forcing partners to stop working
- Taking control of their wages
- Taking out loans or putting bills in their partner’s name
If you or someone you know is in this situation, help is available:
Refuge
Phone: 0808 2000 247
Website: www.refuge.org.uk
How to Start Ditching Debt
Debt can feel intimidating, but there are ways to tackle it step by step. One simple method is the debt snowball, which helps you build momentum as you pay down balances.
- List all your debts from smallest to largest.
- Pay the minimum on all debts.
- Put any extra money toward the smallest debt.
- Once the smallest debt is gone, roll that payment into the next debt.
- Repeat until you’re debt-free.
The key is taking small, consistent steps. Each payment is progress.
Building a Debt-Free Life
At Financielle, our community is here to support you, no matter where you are on your money journey. From step-by-step guides to our digital course, we help women ditch debt and build strong financial foundations.
Debt can take a toll on your mental health, but with the right plan and support, it’s possible to take control and say goodbye to debt for good.
Get started today with our Financielle Playbook and start building a financial life that works for you.
