What is your biggest concern when it comes to financial matters and paying off debt? Odd as it may seem, men and women have very different responses to this question on the whole. The results of a recent survey on the matter turned up some curious differences and similarities worth taking a closer look at.
Women, for example, have a tendency to look most closely at their current levels of debt, while men generally find themselves looking toward the future and planning ahead when it comes to financial matters. Broadly speaking, women worry more about how they are going to find the means of paying off all their current credit card bills, department store cards, and loans -- not to mention their mortgages and living expenses. Three-quarters of women, in fact, say these debts are of the utmost concern to them. Meanwhile, less than 50% of their male counterparts claim to worry about the aforementioned debts, and a paltry 13% of men know what their current debt levels even are. Yikes.
While men, it would seem, are somewhat more laid back about their current debt levels, they are also better prepared for their futures. Men, it turns out, are better at putting their money in higher-yielding investments -- with half of all men having some sort of investment account -- while only 35% of women are doing the same. Only half of women surveyed have a savings account, with men registering around 60% in that category. Three-fourths of men are paying into a pension for when they retire, though only half of women claim to be preparing retirement with a specific company-sponsored plan of any kind.
Understanding Credit Reports
Amazingly, the greatest similarity off all between the genders in this financial survey was the sad fact that both men and women have little understanding of credit reports and how they work (although we think we know more than we actually do). More than 70% of both men and women said they knew what sorts of things affected credit scores and how companies determine whether or not a consumer is worthy of having credit. Just about everyone surveyed, though, got at least one significant answer wrong when asked about credit reports, and only 5% of both men and women said they have inspected their credit report in the last year.
One in every four people asked did not realize that late payments to a creditor can negatively affect your score; just over 40% of people did not know regularly applying for credit can also drag your score down a few notches. More than 70% of people mistakenly thought that unpaid household bills that haven’t gone onto collection could affect a decision made by lenders. In some parts of the country, if you are late on your utility bill, report it to the credit bureau and your scores can dramatically drop as a result. Amazingly, 60% of men and 67% of women thought that credit reference agencies make decisions about credit applications -- though it is, in fact, the credit card issuers, banks and other lenders that make the decisions on who gets money and who doesn’t.
No matter who you are, male or female, stay at home dad or working parent, student or gainfully employed, knowing what your credit scores are and understanding how credit scoring works is the only way to get a grasp on where you stand financially. Once you know where you are, you will be able to decide how and when you apply for credit.
Josh Michaels is a freelance writer who survives on very little income and carefully considered financial decisions. This combination has allowed him to have fun, travel the world, and start a retirement account – all without the pleasure of holding a full-time job. He can be reached at: joshmichaelsmoney@hotmail.com
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