The latest regional personal insolvency statistics have revealed that the North East had the highest rate of personal insolvency of any part of England and Wales in 2016.
The region had a total individual insolvency rate in 2016 of 25.3 per 10,000 adults, which is over 25% higher than the average for England and Wales.
While worrying, the results won’t come as much surprise to many in the region with the recent statistics meaning this is the ninth consecutive year in which the North East has fallen behind its regional counterparts.
Andy Haslam, North East vice chair of insolvency and restructuring trade body R3 and a partner with Tait Walker, said: “The latest regional personal insolvency statistics follow a very established pattern.
“Insolvency rates are typically highest on the coast and in places where major industries have declined, and these are both factors which are having a significant impact on the North East.
“Coastal towns often have lower wages and higher levels of unemployment. The dominance of the tourist trade means available jobs are often low paid, part-time, or seasonal, which makes personal finances vulnerable to short-term shocks.
“While the North East economy is continuing to evolve and modernise, with sectors such as tourism and technology performing strongly and contributing ever more to it, the long-term effects of the decline of traditional industries in recent decades is still clearly being felt in communities right across the region.
“Money problems can hit anyone at any time for many different reasons, but there are perhaps the widest ever range of options available today to help people find solutions to their particular issues.
“Seeking qualified advice as quickly as you can is an essential step to anyone with money worries to take if they want to give themselves the best chance of getting things back on an even keel and finding the right way forward for themselves and their creditors.”