|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Analysis Comment
Maternity leave propels new mothers into debt
Women take on extra fi nancial burdens during pregnancy
Akansha Nath Head of partnerships, Credit Karma UK
It takes women more than two years to bounce back fi nancially after having a baby, leaving many fearful about their own fi nancial security and nearly a quarter (23%) convinced they will never return to the fi nancial position they were in prior to giving birth. Our study of new and expecting parents
found that one in four (26%) women go into debt to cover maternity leave – averaging £2,800 in borrowing – that is a £560 increase from 2018.
No savings Nearly a quarter (23%) of women now have no savings when they go on maternity leave, but the rise in borrowing has been accelerated by the rising cost of living. According to the study, parents who borrow
are using the money to cover basic expenses like groceries (42%), bills (32%), baby clothes and supplies (26%).
Interest charges In addition, women with student loans face severe interest charges on their loans whilst on leave and unable to work, which already has a signifi cant fi nancial impact. A new mother
disadvantaged fi nancially throughout their life, and the responsibility to give birth plays a huge role in this gender disparity
Women are often
accrues an average of £1,770 loan interest in just six months of leave.
Credit score Women often see childbirth impact their credit score too, which can see them set back nearly £17,000 more than men across their lifetime in interest. This is because many (17%) rely on their
(usually male) partner’s income to apply for any required borrowing during maternity leave, giving him a chance to build up his score as the owner of more credit agreements. This is debt owed by both partners, howev-
er, in this scenario, mums don’t get credit for demonstrating positive borrowing behaviours.
Disadvantage Women are often disadvantaged fi nancially throughout their life, and the responsibility to give birth plays a huge role in this gender disparity. At a time when the cost of living is aff ecting
most people, and every penny counts, it is more important than ever that women take advantage of any support available to them. CCR
12
www.CCRMagazine.com
June 2022
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52
