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Research warns over region’s debt

DEBT management plans and debt relief orders may be needed more in the North East than anywhere else in the country, new research has shown.

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

“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,” commented R3’s President, Steven Law on the figures.

There were almost six thousand (5,923) new personal insolvency cases in the North East in 2008, 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.

As well as affecting the North East, research has shown that the recession has hit men disproportionately worse than women, with a rising number seeking debt management advice.

The Consumer Credit Counselling Service (CCCS) reports a 51% increase in the number of men seeking debt advice since 2007, as a combination of rising unemployment, a slower rate of salary increases and rising household expenditure all take their toll on men’s financial status.

An effective debt management plan can help you control your debt and improve your financial situation, but it is always advisable to seek professional debt management advice.

This was posted in Bdaily's Members' News section by Ruth Mitchell .