With the overuse of credit cards becoming more of a problem yearly, young women are declaring bankruptcy after using their credit cards for major spending sprees. Some women have run up debts of more than $50,000 buying clothes, going on holiday and living the high life socially.

Not so long ago it was rare for women to declare bankruptcy but, today, the number is growing rapidly thanks to the easy access to instant credit on credit cards. Uncontrolled spending on, and easy access to credit cards is blamed for bankruptcy rates among women rising. It is unfortunate that women allow themselves to spend uncontrollably and run up huge debts in the pursuit of frivolous lifestyles, or trying to relieve the boredom in their lives which only shopping seems to fill.

Examples of famous women who ran up huge bills on their social lives are the Duchess of York and Paula Yates. Both earned millions from their careers and Yates died leaving only £14,000 behind. And the Duchess of York was publicly criticised for running up bills of more than £4 million. Many more women are finding themselves filing for bankruptcy as the only way out of a problem and debt they can never pay off.

Is Bankruptcy a Life Sentence?

Be warned, bankruptcy and the affect on your personal life extends far beyond the term of the insolvency period. There can be lifelong consequences for just frittering away your money (or credit) on a lifestyle well beyond your means. In some countries these types of bankruptcies have risen more than 30%. Creditors are held responsible for giving people easy access to credit cards, store credit cards, hire purchase loans and overdrafts.

Uncontrollable Credit Card Numbers

Some women have been known to amass between 20 and 30 credit cards along with personal loans and credit agreements. What is amazing is that these women, nor the lenders, give little thought to how they will repay these loans. When they run out of money on one card they simply apply for another credit card.

There are worldwide recommendations that any fine print written into loan and credit card agreements be made more transparent. Tighter credit checks with the focus on the ability to repay are also recommended to stop the irresponsible lending to people beyond their means.
Who is Likely to fall into the Credit Card Trap

There are three types of women who fall into the credit card shopping spree category:

•    young independent, professional women who like the best in life and go out and buy it
•    housewives and divorcees who go shopping to overcome their boredom
•    older women trying to cope with their children leaving home and too much time on their hands.

Much of the problem comes from the cultural change and people have much higher expectations for their standard of living. And, the lenders have loosened their purse strings and seem to be lending to anyone whether they can repay the money or not.

Creditors are spending much more than ever on marketing their products, literally giving away credit cards and instant loans. Don’t get caught up in the hype of getting easy money. At the end of the day you are ultimately responsible for yourself and your debts. Do you really want to spend the rest of your life living under the stigma of bankruptcy just for the sake of another designer dress or expensive meal? After all, there is no point being broke but chic. Is there?

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