Seaside towns being washed away with rising levels of debt

Published on by George Puttick (author)

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Figures released today have shown young families living in Seaside towns in England and Wales are experiencing the worst levels of debt.

The Isle of Wight was seen to have the highest rate of insolvencies, followed by Torbay and Scarborough. Torbay, a seaside town in Devon had an insolvency rate of 43.0 per 10,000 adults according to the insolvency service. This figure being more than twice the England and Wales average.

Similarly, seven of the 10 local authorities with the highest rates were in costal area the explanation behind this tends to be because much of the work in those areas are low-paid and seasonal, unemployment is also high many of these seaside areas.

Hastings was also one of the worst effected seaside areas with an insolvency rate of 30.5 per 10,000 residents.

Overall 18-34 year olds becoming insolvent rose by 31.3% and a survey conducted by accountancy firm PwC found that 28% those in the 25 to 34-year-old age group are concerned and worried about making repayments on their debt.

Furthermore, around 20% of young adults have been using credit cards to pay for essential items like food.

The overall figures show insolvencies as a whole are on the rise, but have not yet reached its peak of what it was in 2009 following the financial crash 

Concerns are growing even more ahead of a possible rise in interest rates as soon as next month.



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