Young people living in seaside towns most at risk of insolvency, figures show

Blog Insolvency

People living in remote seaside towns in England and Wales are enduring some of the worst levels of debt the country has ever seen, a report has revealed.

The Insolvency Service, which published the figures, found that the Isle of Wight has the highest level of insolvencies among young adults.

It found that the number of 18-24 year-olds becoming insolvent rose by 31.3 per cent between 2015 and 2016, to 38.2 insolvencies per 10,000 residents.

In terms of overall insolvencies, people in Torbay, Devon, are the worst affected, with some 43 insolvencies per 10,000 residents.

Other towns also noted were Blackpool (34.6 per 10,000), Hull (35.8), Great Yarmouth (38.1), Ipswich (34.8), Margate (30.1), Hastings (30.5), Scarborough (38.2), and Plymouth (35).

The Service suggested that coastal communities tend to be the worst affected because much of the work is under-paid and infrequent with high levels of unemployment.

It also warned that rising interest rates could inflame the problem – as the Bank of England hints at a possible rate rise this year.

A recent survey suggested that 28 per cent of those in the 25 to 43 year-old age group are worried about making repayments on their debt, while one in five have been forced to use credit cards to pay for essential items like food.