Since the 1960s, women have come a long way in the fight for equality in the home and the workforce. However, it is still a reality that a majority of women earn an average of 80% to the dollar that men earn.
The existence of the gender pay gap can be frustrating for many women across New Mexico. And studies report that the wage gap could also be contributing to a debt gap between women and men.
What could cause a debt gap between genders?
There are several reasons that a debt gap could exist between men and women. The three most common reasons include:
- More student loans: Women make up the population of college students nowadays. Therefore, they hold most of the student loan debt. This leads many women to begin their careers with more debt to pay off.
- Fewer earnings: And in those careers, women could earn roughly9,909 less than men annually, according to Business Insider. Earning that much less each year would naturally make it more difficult to pay off the same amount of debt in the long run.
- More financial support: Additionally, MarketWatch also reported in 2017 that American families rely on the mother’s income. Supporting the family in addition to earning less and paying debts monthly also places a unique strain on women in these situations.
Credit card debt could play a role as well
CNBC reported that on average, 31% of women do not pay their credit card balances in full over a six-month period. Meanwhile, more men report paying their credit card bills in full. The causes behind the debt gap listed above could certainly be a factor in these situations, though there is no solid evidence linking these statistics.
Of course, individual spending habits impact the amount of credit card debt that individuals face. But the ratio between income and debt certainly plays a role in how individuals approach paying off their debt.
However, even in the face of a debt gap, there are always options to achieve relief from overwhelming debt – regardless of gender.