Women are more likely to repay debt on time than men, according to a recent study into gender defaults, which also revealed that relationship debt is more commonly a woman’s problem.
The five-year study, conducted by credit reference check firm Veda Advantage, indicated that women are more likely to repay credit cards, personal loans, mortgages and overdrafts on time than their male counterparts.
Commenting on the findings, Veda Advantage general manager of information, services and solutions Erica Hughes said not only did the study reveal that women are more reliable with repayments, but women are taking on primary responsibility for household utilities.
“Unfortunately, it is not well known that utilities are a type of credit and are noted on your credit file. This means it’s actually quite a big responsibility you are taking on when you open a utility bill in your name,” Hughes said.
During 2007, 58 per cent of women had utility bills in their name in Australia, and over the last five years almost 55 per cent of credit defaults were by men.
Veda urged Australians to protect themselves from contracting debt from a partner, which is known as relationship debt and occurs when someone takes on another person’s loan, debt, bill, or becomes a guarantor not for personal gain.
“Historically, and according to the Office of Fair Trading, relationship debt is more commonly a woman’s problem as they are more vulnerable to being burdened with their partner’s unwanted debts. However, regardless of gender, I would like to warn all Australians to be alert and aware of the legal ramifications when applying for credit in their names,” Hughes said.
