RSM Tenon: Genders equal in insolvency rates

While personal insolvency levels are dropping overall, the numbers of women becoming insolvent now match the numbers of men for the first time ever, according to analysis from RSM Tenon.

Figures from the firm’s online Tracker system show that women accounted for exactly half (around 13,800) personal insolvencies in Q2 2012.

Mark Sands, RSM Tenon’s head of personal insolvency, said ‘What is alarming is that 28% of the total women becoming insolvent are under 35 compared to only 18% of men. This could be the result of a number of things including the effects of the public sector cuts who employ a large number of female staff and an increase in women obtaining credit earlier in their careers only to see their debt levels spiralling out of control at a much earlier age’.

Sands said that the overall level of personal insolvencies in England and Wales this year is likely to reach around 100,000, compared with over 113,000 the previous year, and is likely to remain low for some time unless interest rates rise.

RSM Tenon calculates the national average for the number of insolvencies per 10,000 adults to be 26 for the last 12 months, but said there is considerable regional variation. The London rate of 17 is well below average while the North East rate is 34 out of 10,000 people.

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