December 5,2006
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Young Women at Highest Risk of Falling Into Debt
It's no surprise that Americans in their 20s and 30s are at a significantly higher risk of incurring debt than their elders. It makes sense that young people would have the fewest assets and least amount of good financial sense, as a result of less life experience. What is surprising, however, is that the debt load is so skewed towards females in the 18-34 demographic.
Experts note that young women may first gain debt when they take on student loans for college, and then repay them at a slower rate as they consistently earn less than their male peers – typically only 85%. Young women may turn to credit cards to make end meet, and also to boost their new adult social lives. On average, women tend to carry more credit cards than men, and, consequently, more debt.