We spoke to debt experts to debunk some of the myths surrounding women and debt.

Women will shop till they drop … banks are not that keen to give credit to women…men are more money-savvy and therefore have less debt … True or not? We spoke to debt experts to debunk some of the myths surrounding women and debt.

Myth 1: Women are less indebted than men

Actually, it is difficult to prove that one gender is more indebted than the other because statistics keep changing every day, says Matthys Potgieter, marketing manager at DebtSafe. In 2017 men were leading the indebted pack, but this year might be different.

Myth 2: Being a woman will affect your credit application

One of the factors that determine your loan amount is income. A recent report by Africa Check showed that women earn 27% less that men. Men tend to qualify for more credit because they earn more. This sometimes leads to a misconception that gender plays a role in your credit application.

Potgieter says credit providers do not grant credit based on your gender, age, sexuality or race. He says that banks look at your credit score.

“A credit score is dependent on how you conduct your financial affairs,” says Potgieter.

He says that it is important that you check your credit report and plan your finances well to improve your credit score.

Myth 3: There are more female applicants for debt counselling than men

The split between male and male applicants for debt counselling is virtually equal, says Neil Roets, CEO of Debt Rescue. He says that there is a sway in either direction depending on what time period is taken into account.

“This is indicative of the fact that the current financial distress being faced by consumers affects everyone, irrespective of gender,” says Roets.

Myth 4: Women receive a different package when applying for debt counselling

The reason this view exists is that some debt counsellors offer credit life insurance which offers maternity benefits for women.  According to Roets, all debt counselling applicants are treated the same, as the remedy for over-indebtedness is something that is required by all. This is because debt affects everyone.

Myth 5: Women and men incur different debts

Potgieter says men and women tend to incur similar types of debts. He says that there is a slight tendency for women to have more retail store accounts and credit cards. This is largely because women tend to take on the role of purchasing items such as groceries, clothing and school necessities for the family.

How to stay out of debt

  1. Cut back expenses where possible.
  2. Never incur debt to cover debt.
  3. If you are struggling to pay your debt for the month, contact all your creditors and reschedule your loans immediately.
  4.  Avoid any delay in payment.
  5. Don’t incur debt for no reason.
  6. Seek the help of a professional, in the form of a debt counsellor, to assist you in repaying the debt in smaller instalments, whilst covering your living expenses, and to avoid legal action.
  7. Never use your credit card to keep up with Joneses

This article has been prepared for information purposes only and it does not constitute legal, financial, or medical advice. The publication, journalist, and companies or individuals providing commentary cannot be held liable in any way. Readers are advised to seek legal, financial, or medical advice where appropriate.