Men vs. Women: Who Has More Credit Card Debt?
Women are stereotypically seen as irresponsible spenders, but the data doesn’t back this up. According to a 2019 Experian study, men carry more debt than women across nearly all categories, including credit card debt — the study found that men have $125 more in credit card debt than women on average.
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Why Men Have More Credit Card Debt
The reason why men have more credit card debt than women is not what you might think.
“While it may feel counterintuitive, the main reason men have more credit card debt than women is that men continue to make more money than women for the same work,” said Lorraine Ell, CEO of the financial advisory firm Better Money Decisions. “Average salaries for men are higher than for women, so men feel entitled to spend more and don’t think twice about putting charges on their credit cards. Women, on the other hand, are more conservative in making expenditures. Because they make less money, they are typically better at budgeting and are generally more aware of their finances.”
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How Men and Women Use Credit Cards Differently
“The way men and women view credit cards has a big impact on their spending,” Ell said. “To men, credit cards are for fun. They spend more on entertainment, with things like eating out, bars and sporting events taking the top spot.”
On the other hand, women are less likely to use credit cards for fun spending.
“Women view credit cards as an extension of their salary and their charges are more practical,” Ell said. “Women are more likely to use credit cards to supplement living expenses because they make less in general.”
This means that men and women use credit cards for different types of purchases, even within the same spending category.
“For example, maybe both men and women use their credit cards to purchase food, but a man is more likely to go out to eat, whereas a woman might buy groceries that last longer,” Ell said. “The value of each purchase is different.”
Both Genders Make Impulse Purchases on Credit Cards — but Men Make Larger Impulse Purchases
Ell doesn’t believe that women make more impulse purchases than men, and vice versa. However, men are more likely to spend more on impulse purchases.
“Both men and women make impulse purchases — we’re all guilty of it,” she said. “The intent is the same, but the extent is what matters. There’s no shame in the occasional splurge or impulse purchase, but men spend considerably more money.”
Women are more likely to do research before making a large purchase, while men may make a large purchase impulsively.
“Given the discrepancy in salaries, women are far more likely to research a purchase,” Ell said. “Women have less discretionary income and need to be sure they are purchasing the best product for the money, so they are more likely to put in the time and energy to do thorough research. There is more thought that goes into every purchase when you’re more aware of a budget, which is why women will look into the brand of product, compare across retailers, and consider sales and time of year before actually buying.”
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