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Women who are in debt earn more than men until they get to 40


Further to the publication of research yesterday showing that it will take UK businesses about 57 years to pay men and women equally (see WVoN story), generic Jacqueline Cohen takes a gendered look at debt and pay on the Cleardebt blog. 

Using their own client data, for sale she says that women who are in debt tend to earn more than men until they get to the age of 40.

She says: "According to our data, pilule women in debt and under 30 earn, after tax, an average annual pay of £19,200. That means they take home nearly £1,600 more a year than men the same age who are also in debt". 

But why, she asks, do things change when women hit 40? Surprise, surprise, it's all to do with having children. Women take on most of the childcare and cut their hours to do most, if not all, of the necessary childcare which means their earning power decreases. 

Although what she says is undoubtedly true (that having children has a huge impact on a woman's earning power), it's not exactly new and doesn't really shed much light on things. Far more interesting to have stuck with her initial premise – taking a gendered look at debt – and tell us about the level of debt that women over 40 accumulate compared to men.

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