Northern and Scottish towns lead insolvencies recovery
The UK’s rate of personal insolvencies dropped by 18% as towns in the North and Scotland showed the greatest improvement in 2015, according to Experian.
The average number of personal insolvencies in every 10,000 households across the country fell to 28 last year, down from 24 in 2014.
Skegness was the most improved area in the UK, as personal insolvencies fell to 37 in every 10,000 households, down 38% from 60 in 2014. Skipton, Doncaster and Blyth were among the other areas in the North of England to make significant progress over the course of the year.
Scotland had four of the top eight improving areas. Personal insolvencies fell to 11 in every 10,000 households last year in Dumfries, down from 31 in 2014, making it the most improved Scottish area. Glenrothes, Clydebank and Glasgow – Parkhead also recorded notably better figures year-on-year.
Experian’s Andy Wills said: “It’s encouraging to see an improving picture for personal insolvencies, particularly in the North of England and Scotland. However, there are still areas that are struggling and the potential for levels of bad debt to rise among those most vulnerable is high.
“The majority of people struggling with debt want to somehow regain control of their finances. However, it can be a very stressful and emotional time, and the embarrassment of speaking to someone about their debts can be a barrier to taking those first steps to recovery. This is why it is important for credit providers to understand the best way to communicate with affected customers, as well as understand what, if anything, they can afford to repay."