Middle-aged mothers are being plunged into insolvency in record numbers, researchers say.
According to a study, women between 35 and 54 are “suffering most from the economic crisis”.
Bankruptcy and other types of insolvencies are said to be rising faster in this age group than any other, as women struggle to balance family life with a job.
Many blame their insolvency on a recent divorce or break-up, according to the report, based on official insolvency figures.
Keith Stevens, an insolvency partner at accountants Wilkins Kennedy, said: “After a divorce, women often feel under pressure to carry on with the same lifestyle as when they were married. They want to make sure their children aren’t affected any more than necessary. However, this may not always be financially realistic.”
Five years after a divorce, the man is typically earning 25 percent more. But the woman’s income has dropped by 9 percent .
Many others, who have lost their jobs during the recession, struggle to find work at a similar salary. And as women in that age-group often have young or school-age children, it is often hard to find work with the flexibility they need.
Mr Stevens said: “Women with children may be less attractive than other candidates, especially with smaller employers who might not have the resources to juggle part-time and flexi-time arrangements.
“Many women are therefore forced to take lower-skilled and lower-paid jobs.”
Typically, many women end up taking jobs in the so-called “five Cs’ - clerical, catering, cleaning, caring and cashiering, which all tend to be low-paid positions. Others simply cannot get a job at all.
Many insolvency victims are “kitchen-table tycoons”, who set up their own business after failing to find a job that fits around family life - but flounder when the plan goes wrong.
Mr Stevens said: “We have seen a significant increase in the number of women launching their own businesses during the recession.
“However, this also comes with greater financial risk. For every business that succeeds, there are many that never get off the ground.”
There are three different types of personal insolvency. Bankruptcy is the most popular option, but there are also debt relief orders and individual voluntary arrangements. The debt relief order is particularly well-used by women, because it gives them the chance to wipe the slate clean for just £90, and does not involve appearing in court.
To qualify, they must have debts of less than £15,000 and disposable income of no more than £50 a month after paying tax, National Insurance and “normal household expense”.
Quarterly figures, to be published on Friday, are expected to show 366 people a day entering insolvency between July and September, according to accountants RSM Tenon.
Mark Sands, head of bankruptcy, said: “If anything, people will face even greater difficulties in the coming months with public sector cutbacks likely to leave many people facing a period of unemployment and reduced wages. These new challenges will be a step too far for a significant number who have continued to struggle with debts built up over several years.” - Daily Mail