Figures just released from the Insolvency Service reveal that seaside towns in England and Wales are suffering the worst levels of debt in the country.
The Isle of Wight has the highest level of insolvencies among young adults according to the Insolvency Service, followed by Torbay and Scarborough. (A formal insolvency procedure is bankruptcy, an Individual Voluntary Arrangement (IVA) or a Debt Relief Order (DRO)).
These figures come ahead of a possible rise in interest rates later this year, which would inevitably make borrowing more expensive.
Coastal towns tend to be the worst effected because much of the work is seasonal and low paid.
It is important however, if a family or individual is struggling to pay their debts that they seek debt advice. Options are always available and can include petitioning for your own bankruptcy, entering in to an IVA or a DRO. Any of these options may be the best solution for a debtor’s situation, but will obviously be dependent on their financial and asset position.
Torbay in Devon is shown by the Insolvency Service to have the highest overall rate of Insolvencies in England and Wales, with 43 per 10,000 residents in 2016.
The report confirms a worrying trend that insolvencies are on the rise in all age groups. A recent survey by the accountancy firm PwC suggests that 28% in the 25-34 year old age group are worried about making repayments on their debt.
20% of young adults have used credit cards to pay for essential items like food.
The figures show that insolvency rates are now rising for the first time since 2009. The number of bankruptcies, IVAs and DRO’s has still a long way to go before they reach the peak of insolvencies, seen in 2009.
Once again it is important to stress that if someone is struggling with unmanageable debts they seek immediate advice and help from a reputable debt advisor as soon as possible. Call Farleys Solicitors on 0845 287 0939 or submit your enquiry through our online form.