Data from credit reference agency Experian shows that locations in the North of England and seaside towns are suffering high rates of personal insolvency, with young families on limited budgets struggling the most.
The data shows that 19 out of 30 towns with the highest rates of insolvency are located in the North of England and North Wales.
Seaside towns Torquay, Scarborough and Penzance have the highest rates of personal insolvencies anywhere in Great Britain. Torquay tops the list with 19 out of every 10,000 households being declared insolvent in Q4 2014.
Experian’s analysis found that young families with squeezed budgets continue to find their financial circumstances difficult. This group has the highest rate of personal insolvencies of any group, down from 21 in every 10,000 households in Q4 2013 to 19 in Q4 2014.
Overall the picture is improving with personal insolvencies in Great Britain falling from 10 in every 10,000 households in 2013, to nine in every 10,000 households in 2014.
Jonathan Westley, managing director of Experian’s consumer information services UK & Ireland said: “Insolvency rates within young families and across some key coastal towns and locations in the North remind us there is still some way to go in terms of recovery. Many people are still on stretched budgets further highlighting the need for credit providers to recognise circumstances unique to each individual, enabling their money to go further and help support them against debt.
“The good news is that we’re on the right path and it’s promising that overall insolvency rates are steadily declining.”
