The scourge of the gender pay gap continues to affect many women, who are increasingly taking on more debt.
This is according to Sebastien Alexanderson, the head of National Debt Advisors.
Data from Statistics South Africa shows that there is a roughly 30% pay gap across various industries.
On International Women’s Day, Alexanderson said that the implications of the gender pay gap were far-reaching.
Due to the gender pay gap, many women are not able to save, but they also have to borrow more money for emergencies or even daily expenses, making it tough to get out of debt.
"Women are taking on the brunt of managing debt, often using loans to make up for the smaller salary they receive compared to men. Unfortunately, this can trap them in a cycle of taking on more debt than they can handle," Alexanderson said.
The growing phenomenon of female breadwinners also complicates the situation. Data from the Stats SA General Household Survey shows that almost 38% of South African households being headed by women.
Alexanderson said: "The unfortunate reality is that many women end up being the main earners not by choice, but because of their circumstances.“
Wanita Isaacs, Head of Key Accounts at Momentum Distribution Services said that due to the financial disparity, women might not receive the same level of financial literacy, investment opportunities, and retirement planning as their male counterparts.
Here are five tips to help you manage the gender pay and debt:
– Plan ahead with a budget: Having a budget will allow you to looking three to six months ahead and help you manage big expenses without falling back on debt.
– Be a savvy shopper: Taking advantage of sales, loyalty programmes and buying in bulk can make a big difference to your pocket.
– Focus on debt management: Making debt repayment a priority can open up your budget for savings and investing putting you on the path to greater financial freedom.
– Educate yourself financially: Make some time to learn about personal finance so you can make smarter and more informed decisions as well as boost your financial knowledge.
– Grow your wealth: Understanding and improving your net worth, setting financial goals, and keeping separate savings accounts for independence within relationships are key steps to building a secure financial future.
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