North East UK more in need of debt management

A new research shows that the North East of the country may be more in need of debt management such as Individual Voluntary Arrangements and Debt Relief Orders to deal with debt problems.

The bankruptcy map of the UK was compiled by R3, the insolvency trade body. The results of the study show that the likelihood of becoming insolvent is almost seventy percent (69.5%) higher in the North East than in London.

Commenting on the findings, R3′s President, Steven Law said, “Prior to the recession, the North East had a higher than average unemployment rate and the region’s construction industry was badly hit during the economic downturn so it is understandable that personal insolvencies are more common there.”

There were almost six thousand (5,923) new personal insolvency cases in the North East, which means that for every ten thousand people, 29 of them became insolvent. The figures indicate that people who live in London are least likely to go into a formal insolvency procedure.

A further analysis of the insolvency figures show that recession has hit men harder than women, with a rising number of men seeking debt advice to get on track. According to the Consumer Credit Counselling Service (CCCS) report, there was a 51 percent increase in the number of men seeking debt advice since 2007. Factors such as rising unemployment, a slower rate of salary increases and rising household expenditure combined took toll on men’s financial status.

The top ten insolvency regions (new personal insolvency cases per 10,000) according to the report by R3 are:  

1.    Torbay, South West (45.8)

2.    Kingston upon Hull, Yorkshire and the Humber (40.7)

3.    Lincoln, East Midlands (39)

4.    Plymouth, South West (38.8)

5.    North Tyneside, North East (37.4)

6.    Gateshead, North East (37.1)

7.    Corby, East Midlands (37)

8.    Hastings, South East (36.9)

9.    West Devon, South West (36.9)

10.    Thurrock, East Anglia (36.7)

An effective debt management can help you control your debt and improve your financial situation, but before settling for a specific debt solution, it is always advisable to seek professional debt advice to explore your options.

I hope you have found my blog useful and enjoy the rest of the week. Lets hope the rain goes away first!

Nigel

Nigel