Insolvency trade body R3 has once again warned that people living in coastal areas are more vulnerable to economic shocks that can trigger insolvency.
Looking at the geographical spread in the annual personal insolvency statistics* published by the Insolvency Service, the North East and coastal towns such as Torbay and Blackpool typically had the highest concentrations of personal insolvencies. Stoke-on-Trent is once again the local authority with the highest rates of personal insolvencies.
Having analysed annual personal insolvency statistics from the Insolvency Service, Mark Sands, Chair of R3’s Personal Insolvency Committee, says: “Coastal areas often have higher rates of personal insolvency than inland areas. As places which often depend on an influx of tourists in the summer months for income, they are dependent on the consumer pound, which has been in shorter supply of late. The seasonal nature of tourism-related work makes it hard for many residents to build up savings to last them in leaner times, leaving them vulnerable to the type of economic shock that can often trigger insolvency.
“Although the rate of growth of consumer debt has slowed, the amount owed by individuals is still rising, while inflation-adjusted employees’ earnings are still lower than before the 2008-2009 recession, according to the ONS. Ensuring that people in problem debt are aware of their options, and that they can access a suitable form of personal insolvency if that is the best option for them, should be a priority for the Government.”
Personal insolvency can be an overwhelming and stressful experience. If you are struggling with debt, or know someone who is, our experts at our partner business BM Advisory can help. Whatever your situation, the sooner advice is taken, the greater the range of options that could be available to you to resolve any issues and get you back on the right track. Your initial consultation is free of charge, and you can rest assured that it will be in total confidence.