The ‘quintessential problem debtor’? Mother-led households in economic hard times
Maureen Baker
University of Auckland
Contact Email:   ma.bakerauckland.ac.nz

As the world slides deeper into economic recession, rising levels of personal and household debt become more of a policy concern, especially when combined with increasing unemployment and high rates of separation and divorce. While most household debt relates to mortgage costs that are gradually paid off over time, British research has suggested that the quintessential ‘problem debtor’ is a young single parent living in rental accommodation (Balmer et al 2005). When relationships break down, couples usually divide their marital assets but most couples have few assets and considerable debts. Furthermore, the living arrangements, family responsibilities and earning capacity of separated mothers and fathers continue to differ substantially. This paper examines the gendered patterns of family debt in the liberal welfare states, arguing that the social circumstances of sole mothers particularly contribute to unmanageable debt levels and reduce their strategies for recovery. The paper argues that policy strategies need to better acknowledge the interconnectedness of problem debt with relationship breakdown, the challenges of the ‘post-divorce family’ and the reduced earning capacity often related to mothering alone.

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