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Credit card debt is an unfortunate reality for most Americans, but it all depends on how long it takes to pay off.
A recent poll by GOBankingRates asked the question, “How long do you think it will take you to pay off your credit card debt?” With over 9,000 responses, 36% of those in debt said he would take 1-5 years to pay off, and 30% thought she could pay it off in 6-12 months. rice field.
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About 26% believe it will take six to 10 years to pay off the debt, or that they will never be able to pay it off, and 64% of those who said this were women.
Why are women pessimistic? Simply put, they face more financial problems and social pressures than men, and may find it more difficult to pay off their credit card debt.
“There are several reasons why American women think it will take them longer to pay off their credit card debt,” said Levon L. Galstyan, CPA at Oak View Law Group. “One reason, he said, is that women tend to earn less than men on average, which means they may have less disposable income to pay off their debts. increase.
“Furthermore, women are more likely to take on debt to pay for things like education and health care, which can make it harder to pay off credit card debt. It can cause you to take on a lot of debt and take a long time to pay it off.”
Let’s elaborate on each of these points and more.
income disparity
According to the latest Census Bureau data, in 2021 the median income for men was $61,180 and for women was $51,226.
“On average, women tend to earn less than men, which means they may have less disposable income to pay off their debts,” Galustian said. “This can make it more difficult for women to make large payments on their credit card debt, which can take longer to pay off.”
Rising medical and educational costs
Women pay an average of $1,639 more per year than men for health care alone.
“Women tend to have higher costs than men, especially health care and education,” Galustian said. “These expenses can put a strain on women’s finances and make it harder for them to pay off their credit card debt.”
Rising social expectations
“Societal expectations and discrimination may also be contributing to women shouldering more debt,” Galustian said. “For example, women are expected to shoulder more household expenses and childcare burdens, which can lead to more credit card debt.”
Lack of maternity benefits
“Many jobs still don’t offer adequate maternity leave benefits, which can be a huge financial stress for working women with children,” said Mark Woloshinski, a personal finance expert. “If a woman feels she needs more time [with her children] It is up to her to figure out how to replace her wages during that extra time than what her employer has provided. intervene. ”
pink tax
“The pink tax also plays a big role in this statistic,” said Uroshinski. “It has been proven that goods and services marketed to women carry a much higher markup than men.”
lack of financial education
“Women may also need more financial education and access to resources, which makes it more difficult for them to understand and manage their credit card debt,” says Galstyan.
According to a 2022 GOBankingRates study, about a quarter of women felt financially illiterate (15% of men felt the same).
single mother
“Single mothers are more likely to be in debt, less likely to have the resources to pay it off, and it will take longer to pay it off,” Galstyan said.
more student loan debt
WeLoans CEO Lucia Jensen said: “Additionally, many of them tend to attend graduate school, which often results in an even greater burden of debt that takes longer to pay off.
“This could all be attributed to women having to strive for higher educational attainment in order to be competitive in the job market when facing off against male job seekers. , may be due to gender inequality in the workplace, as most women are often forced to take on more debt just to increase their chances of sitting at the main table.”
Don’t waste your time on debt
Debt has no gender, and no matter how painful it is, you shouldn’t take your time paying it off. Work on it like there is no tomorrow.
Dr. Enoch Omololu, MS, Founder of Savvy New Canadians, said: “Make a list of all your debt, including how much you owe, the interest rate, and your minimum monthly payment. increase.
“You can look for ways to spend less and increase your income so you can put more money into debt. Or you may need to move to a smaller apartment, but whatever it takes, do it. Paying off your credit debt should be your number one financial priority. ”
Learn more about GOBankingRates
This article originally appeared on GOBankingRates.com: Why are women more likely to think they can’t pay off their credit card debt?
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