The Debt Divide: Gender

Gender-specific marketing is a mainstay of the ad industry--just think about the Virginia Slims ad. Woman-oriented versions of male products ("vintage rose" Carharrt overalls, pink hammers, etc) or women-only services (gyms, golf schools, etc) are growing in popularity. I recently received an advertisement that used gender specificity to market debt relief. This company, www.debtrelief4women.com, proclaims itself the "woman's choice for debt relief options." Their  homepage features a drawing of a slim, young woman wearing a sporty outfit and make-up. In her hand, is a wad of cash (although a stack of bills might be more realisitic). It seems the company does not itself provide financial consultations, but instead matches women with debt management, consolidation or settlement companies based on information women provide. It's pure marketing ploy; the substantive "help" that women get when using a service is not necessarily tailored to women.

Individuals cope with debt and financial distress in ways that reflect their gender. Fellow Credit Slips contributor Dr. Deborah Thorne examined some of these issues in her dissertation and has a forthcoming work on the topic. A recent Pew Center study showed that women bear responsibility for bill-paying in most households. These behavioral differences along gender lines aren't lost on creditors. A Wall Street Journal Article on debt buyers reported that collectors know that women are more likely to repay than men, incentivizing debt companies to focus their efforts on accounts on which women are the primary debtors. See Suein Hwang, Small Claims, Wall Street Journal (Oct. 25, 2004). Debt Relief 4 Women is just another reminder of Elizabeth Warren's observation that the facial neutrality of commercial law can distract us from the gendered realities of debt and household economics.