The Isle of Wight has one of the highest rates of personal insolvencies in England and Wales, official figures show.
The Insolvency Service found that 37 per 10,000 adults in the local authority were declared insolvent in 2017. This is when someone cannot pay their debts, and has to arrange a plan with an official body to pay off creditors. This can include being declared bankrupt.
That rate is significantly more than the England and Wales average of 21.4.
433 new cases last year
The figures are comprised of people who have been declared bankrupt, those who have been given debt relief orders (DROs), which are a form of relief for people on low incomes, and those with individual voluntary arrangements (IVAs), which are a voluntary way of paying back creditors.
On the Isle of Wight there were 433 new insolvency cases in 2017.
DROs were the most common form of insolvency, with 208 recorded last year.
National picture
Across Britain personal debt has ballooned over the past few years, with low interest rates and payday loans contributing to the rise.
Consumer debt reached more than £200 billion by the start of the year, returning to levels last seen in the financial crisis.
In 2017 almost 100,000 new insolvency cases in England and Wales were reported.
On the rise
On the Isle of Wight the rate of insolvencies has increased by 15% over the past two years.
Overall in England and Wales the insolvency rate increased for the second successive year.
The data shows women are more likely to be insolvent than men.
Hitting young people hard
Young people are also struggling, with the biggest percentage of new cases among 25 to 34-year-olds.
As reported in October 2017, the Isle of Wight has the highest level of insolvencies of 18-34 year olds.
Seek impartial advice first
Graham O’Malley, debt expert at Citizens Advice, said:
“Unmanageable debt puts people at risk of insolvency that, in the most serious cases, can result in them losing their home.
“There’s debt advice out there – from organisations such as Citizens Advice – that people do not have to pay for.
“It’s so important people with money problems make sure they get this impartial advice before they even think about going down the insolvency route.”
Article shared by Data Reporter as part of OnTheWight’s collaboration with Press Association and Urbs Media
