Professional Women Left Vulnerable in the Recession; Hit With Debt

Aug. 19, 2010 — -- Heidi Crum, a certified public accountant, staffing business owner and single mother of twin 9-year-old boys, made around $100,000 a year before the recession.

Last year, the staffing business tanked 40 percent, franchise sales became nearly nonexistent and the consulting work she had been doing for nearly a decade ended.

"Given those circumstances and the significant economic recession, I blew through my six months of short-term savings and put $60,000 on credit cards," she said.

A new study released by CareOne Debt Relief Services found that savvy, professional women like Crum were particularly vulnerable.

The study, "Women, Debt and the Recession: A Snapshot of the Changing Face of Debt in America" reported that 45 percent of women seeking debt relief assistance have more than $50,000 in debt -- up from 33 percent just two years ago. The study also reported a 38 percent increase in the portion of women seeking debt assistance with an annual household income greater than $60,000.

The recession left in its wake a new class of women, unaccustomed to significant debt and looking for help.

Those out of the workforce for many years had outdated skills and other women couldn't find new jobs in their fields after layoffs.

They were whipping out credit cards to pay for groceries, doctor bills, utilities and emergencies.