UK Seasides riddled with debt says report

22/08/2012

It will be no surprise to those operating arcades on the coast, but a new report shows that coastal areas in the UK are more likely to suffer from high rates of individual insolvency than anywhere else in the country. Those living by the sea are nearly 20 per cent more likely to go bust than those living inland, says the report released by ClearDebt UK.

Low wages and high unemployment have pushed coastal communities to the top of the league table for bankruptcy and other forms of individual financial failure. Furthermore, 2011 saw the average benefit claimant rate for a coastal local authority reaching 15.4%, compared to an average for inland authorities of just 12.9%.

Some of the worst affected coastal communities include Scarborough, Torbay and Blackpool.  ClearDebt director of external affairs, Andrew Smith, commented: “Life by the sea should be a dream. In reality coastal areas typically suffer low wages and high levels of unemployment, factors which often impact on debt and lead to personal finance problems that quickly spiral out of control. Debt problems for individuals seem particularly difficult in seaside areas that continue to rely on tourism as a major source of income. Our comparison for example of Blackpool and Southend-on-Sea clearly shows that a more diversified local economy leads to higher wages and that is likely to mean fewer debt problems.”

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