Fylde coast’s debt timebomb explodes
Credit card debt and mortgage arrears are blamed for more people than ever before owing large sums of cash and los
And as the credit crunch bites, the situation is only expected to worsen.
One family who spoke to The Gazette admitted they felt "suicidal" after racking up debts of £60,000.
Figures unveiled by national charity Debt Advice Foundation show that in 2000, 74 people in Blackpool went bankrupt.
But that more than tripled to 237 in 2009. The number of personal insolvencies has soared from 117 in 2000 to 543 in 2009.
In total it means four times as many people facing a financial crisis.
The picture is just as grim for Wyre and Fylde.
In Wyre there were 113 bankruptcies last year – up from 50 in 2000 – and 228 insolvencies - up from 69.
In Fylde there were 97 bankruptcies – up from 32 nine years ago – and 176 insolvencies – up from 59.
Debt advice is one of the busiest workloads for Blackpool Citizens Advice Bureau (CAB).
Janet Akl, money advice unit supervisor at the centre on Whitegate Drive, said: "We are continually busy seeing people with debt issues. It's the type of area we live in.
"People are working throughout the summer but it's seasonal, and when they stop working they can get into difficulties.
"Mortgage arrears, repossessions and credit card loans are among the main debt issues they come to us with and it's across the board in terms of age with OAPs not immune.
Last year, 415 repossession orders were issued in Blackpool. There were 140 in Fylde and 160 Wyre.
And it is not just those living on the breadline either who are affected.
High profile celebrities such as former Blackpool FC manager and Scotland star Colin Hendry have proved not to be immune. He was last month declared bankrupt after racking up debts of £1.2m.
Blackpool North and Cleveleys MP Paul Maynard said the consequences of the economic downturn had hit many people hard.
He said: "For a long time in this country, it has become commonplace to build up large amounts of debt on credit cards and the like.
"Because Blackpool has below average wages anyway, that's one more reason why unstable debt can become a problem for people. But it's nothing to be ashamed of and it's better to seek help sooner rather than later."
UK banks and building societies wrote off £9.6bn of loans to individuals in the last 12 months.
In the first quarter of this year they wrote off £2.13bn - £1.25bn of that was credit card debt. This amounts to a write-off of £23.35m a day.
Total UK personal debt at the end of June 2010 stood at £1.45bn.
David Rodger, managing director of Debt Advice Foundation, said: "The tough economic conditions mean that more and more people are struggling to keep on top of their finances – with record numbers of individuals becoming insolvent.
"Being in debt can be very stressful and people are often unsure what they should do or who to turn to for support. Many delay asking for help, which unfortunately means their situation can spiral out of control."
Ms Akl added more people were now being helped towards applying for Debt Relief Orders, which came into being in 2009, and offer a cheaper and less complicated method of discharging debt.
She added: "Some people are worried about coming to the bureau but our service is free and none-judgemental. We are there to give them advice and help them through it and hopefully they can have a better life afterwards."
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