Sep
03
2013

Affordability is paramount: the latest personal insolvency figures reveal

Whilst the number of personal insolvencies during Q2 2013 fell by 6.3% compared to Q2 2013, the quarter-on-quarter picture, however, reveals an increase. Personal insolvencies during Q2 2013 rose by 3.1% compared to Q1 2013. According to Experian’s demographic classification, the rise in personal insolvencies was led by some of the most disadvantaged groups in the UK.

Personal insolvencies from Q1 to Q2 were highest amongst the Claimant Cultures households, with 21 in every 10,000 households becoming insolvent during Q2 2013. These households consisted of families reliant on benefits and living in low-rise council housing where there is widespread disadvantage.

Further analysis revealed that two of the towns to see the highest increase were seaside towns Skegness and Hartlepool. While six of the top ten improving towns in terms of falling personal insolvencies were based in the South, the UK’s biggest improvement was led by a West Midlands town – Stratford-upon-Avon.

Jonathan Westley, MD of Experian’s Consumer Information Services, said: “The annual fall in personal insolvencies is certainly a positive picture, but the quarter on quarter change highlights that there are areas still struggling.

With Conduct Risk being a subject at the forefront of minds within the lending community, it shows how individual circumstances can change at any time and that on-going affordability assessments are needed.”

Towns with the biggest increases Personal Insolvencies per 10k households Q1 2013 Personal Insolvencies per 10k households Q2 2013
Skegness 13.87 25.43
Dorchester 8.44 18.80
Hartlepool 12.92 20.06
Nuneaton 9.82 16.60
Northwich 14.93 21.41
Andover 6.44 12.88
Doncaster 14.81 20.92
Kettering 9.86 15.94
Pontefract 8.63 14.61
Pontypridd 7.78 13.68
Most improved towns Personal Insolvencies per 10k households Q1 2013 Personal Insolvencies per 10k households Q2 2013
Stratford-upon-Avon 15.27 7.8
Torquay 23.41 18.37
Dumfries 9.7 5.86
Farnham 9.54 5.76
Hamilton 13.59 9.98
Aldershot 13.16 9.87
Newbury 11.41 8.24
Bromsgrove 10.43 7.34
Great Yarmouth 14.19 11.16
Newton Abbot 16.38 13.68

 

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