Credit, Collections & Insolvency News
Men are 50% more likely than women to feel more optimistic about their finances than ever before – a quarter of men (25%) felt this way compared to just 15% of women according to research by Creditspring.
However, men are also more likely to rely on credit, with around one in six (15%) men admitting that they will need to borrow money in the next six months, compared to one in ten women (11%).
The research also indicates that a lack of access to affordable credit options is one of the major reasons that push borrowers into debt. A quarter of men (25%) and 13% of women borrowed from a high-cost lender as they were rejected by mainstream lenders and had no other option.
Borrowing from high-cost lenders puts borrowers at an increased risk of falling into a debt spiral as they struggle to keep up with repayments and late fees, which means their credit files are negatively impacted and hinder their access to affordable credit options in future. Over a quarter (26%) of men who borrowed from high-cost lenders fell into a “debt spiral”, compared to 18% of women.
Recent figures from the Centre for Economics and Business Research indicates that the average family could be £1,700 worse off this year whilst the UK inflation has now hit 6.2% – the highest rate in thirty years – and forecasts suggest it is likely to climb higher over the next few months.
Previously, Creditspring revealed that families are at increased risk of being pushed into debt this winter with over a quarter (27%) of people with dependents saying they were planning to borrow to survive the winter. Creditspring also saw the number of customers looking to access affordable loans doubled from 50,000 in July 2021 to over 100,000 in December – as households increasingly struggled to manage their finances.
Neil Kadagathur, Co-Founder and CEO of Creditspring, comments: “Despite the UK struggling through a cost of living crisis, many men remain surprisingly optimistic about their finances. With soaring living costs, purse strings will need to be tightened and men are at real risk of sliding into unmanageable debt if they’re not vigilant.”
“The research suggests that men are more open to borrowing but also face fewer options when it comes to seeking credit. It is up to lenders to do much more to support all UK borrowers with affordable credit options during an extremely tough period where living costs are rising by the day.”
A fifth of people in the UK, 21% of men and 22% of women, called for additional support to improve their financial situation.
Kadagathur added “Access to affordable credit remains absolutely vital to millions across the UK. Currently, there are up to 15m people in the UK who struggle to access mainstream credit options – these are the individuals who are most at risk from predatory high-cost lenders, especially, in the current climate.”
“The lending industry as a whole needs to step up to offer the support millions of borrowers will need over the next couple of months.”