Survey: More Women Than Men Are Stressed About Debt
- UpdatedSep 23, 2024
- A Freedom Debt Relief survey recently found that women are more likely than men to report debt stress.
- The US Labor Department says that women take home 20% less pay than men.
- Debt relief may be able to help women get rid of debt and debt stress.
Financial disparities between men and women are a well-known fact. The Bureau of Labor Statistics recently reported that women take home a paycheck that is 20% less on average than men. But these differences are not limited to take home pay—they also extend to the way that men and women handle their finances, and how they feel about their overall financial wellbeing.
A survey from Freedom Debt Relief suggests that women generally feel worse about their debt than men do. While 49% of females stated that debt left them feeling very stressed, only 42% of males responded the same way. A shocking 41% of women also said that they are unable to save for retirement because of debt and 31% said they are unable to buy a home because of debt.
More women than men also report financial stress due to lack of savings. 47% of women stated that they do not have an emergency fund and 28% of women said they would find it very difficult to cover an unexpected $500 expense—compared to only 15% of men who say it would be difficult.
More women than men also report financial stress due to lack of savings.
Survey results show that savings trends for men and women are markedly different, with 44% of women, compared to 31% of men, stating they have less than $1000 in their savings and checking accounts combined.
Across the U.S, both men and women find themselves having a hard time making ends meet, so if you’re struggling with your finances, you are not alone. One way to establish better financial footing is to start an emergency fund. Having money stowed away for a rainy day could help you avoid additional debt when you’re hit by an unexpected expense.
Start Your Emergency Fund
Here are a few steps you can take to start your emergency fund:
1. Set up a separate account
Opening an account that will be used for emergency savings helps you stay committed to your goal. It’s even better if you can set up automatic payments from your checking account to your savings account. Even if you can only afford to transfer $25 per month, by the end of the year your emergency fund would be $300. That’s the cost of a minor car repair or doctor’s visit.
2. Pay yourself first
Every time you get a paycheck from any source of income, put a little money into your emergency fund. It’s suggested to put away 10% or more of your paycheck for retirement and other savings, but when it comes to an emergency savings fund, making small but consistent deposits could go a long way.
3. Save your windfalls
Tax season is just around the corner, and it’s the perfect opportunity to beef up your emergency fund—especially if you’re planning to get a refund this year. Instead of spending your tax refund, consider transferring it to your emergency fund.
4. Generate extra income
The gig economy is a great way to get a head start on an emergency fund. Driving for a rideshare app, freelancing, or picking up extra hours at work are just a few actions you can take to make more money and siphon some or all of it into an emergency fund.
One more way to get a handle on your debt stress
If you are stressed about debt or want to learn more ways to better handle your finances now and into the future, Freedom Debt Relief is here to help. We have developed a simple to follow guide to help you find the tools you need to move to a better financial future. Get started by downloading our free guide right now.
Learn More
5 Ways to Get Rid of Debt Stress (Freedom Debt Relief)
Is Your Financial Stress at an All Time High? (Freedom Debt Relief)
How Depression Might Affect Spending and Debt (Freedom Debt Relief)
Debt relief by the numbers
We looked at a sample of data from Freedom Debt Relief of people seeking debt relief during August 2024. This data reveals the diversity of individuals seeking help and provides insights into some of their key characteristics.
Age distribution of debt relief seekers
Debt affects people of all ages, but some age groups are more likely to seek help than others. In August 2024, the average age of people seeking debt relief was 50. The data showed that 17% were over 65, and 15% were between 26-35. Financial hardships can affect anyone, no matter their age, and you can never be too young or too old to seek help.
Collection accounts balances – average debt by selected states.
Collection debt is one example of consumers struggling to pay their bills. According to 2023, data from the Urban Institute, 26% of people had a debt in collection.
In August 2024, 28% of debt relief seekers had a collection balance. The average amount of open collection account debt was $3,092.
Here is a quick look at the top five states by average collection debt balance.
State | % with collection balance | Avg. collection balance |
---|---|---|
Nevada | 29 | $5,116 |
Utah | 23 | $4,223 |
Montana | 31 | $4,194 |
Maine | 30 | $4,141 |
Deleware | 28 | $3,911 |
The statistics are based on all debt relief seekers with a collection account balance over $0.
If you’re facing similar challenges, remember you’re not alone. Seeking help is a good first step to managing your debt.
Manage Your Finances Better
Understanding your debt situation is crucial. It could be high credit use, many tradelines, or a low FICO score. The right debt relief can help you manage your money. Begin your journey to financial stability by taking the first step.
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