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Debt problems in seaside town among UK's worst

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CitrixNews Staff
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Debt problems in seaside town among  UK's worst
Debt problems in seaside town among UK's worst37 minutes agoShareSaveAdd as preferred on GoogleOwen SennittNorfolkGreat Yarmouth Borough Council A bird's eye view of Great Yarmouth which includes areas of dense housing and a park, with the beach and the sea to the left. It is a sunny day and the sky is blue.Great Yarmouth Borough CouncilGreat Yarmouth has the third highest rate of people using debt respite services in the country

A seaside town has the third highest rate of people needing debt support in England and Wales partly due to it being a seasonal holiday destination, experts have said.

Government figures show people in the Great Yarmouth area are accessing debt respite services much more than elsewhere in Norfolk and the rest of the country.

Louis Hubbard, who works as a debt advisor in the town, says the seasonal job market leaves people struggling with their finances in the winter months.

There are warnings more people will fall into trouble as costs rise further due to global events hitting bills, such as conflicts in Iran and Ukraine.

Owen Sennitt/BBC People walk along a pedestrianised street lined by shops on a grey day in AprilOwen Sennitt/BBCGreat Yarmouth is much busier during the summer months

Debt disparity

According to data released by the Insolvency Service, 293 people living in Great Yarmouth entered into a debt respite scheme last year.

This equates to a rate of 36.2 per 10,000 people - the third highest in the country.

Known as Breathing Space, the service gives people temporary protection for up to 60 days from creditors and offers debt advice to help manage payments in the future.

The place with the highest rate of people accessing the scheme is Halton in Cheshire (54.9 per 10,000 people), followed by Blackpool, another seaside town (38.1 per 10,000 people).

Norfolk-wide, there were 1,322 people in Breathing Space. Norwich has the second highest rate of people accessing the scheme, 23.2 per 10,000, followed by Breckland at 16.4 per 10,000.

Since 2021, the number of people in the county using the service has nearly doubled, rising from 8.8 per 10,000 people to 17.2.

The national picture tells a similar story, with rates more than doubling since 2021, from 8.7 to 18.2 per 10,000 people.

Last year, one in every 550 adults (equivalent to 89,132 people) entered into Breathing Space and rates were highest for 25 to 44-year-olds and lowest for those over 65.

Andrew Turner/BBC Great Yarmouth's market hall, a wooden structure with zinc roof. In the foreground is seating and tables, with people milling about inside the market building. Stalls can be seen in the backdrop of the building.Andrew Turner/BBCGreat Yarmouth's market place

'Unique situation'

Hubbard works for Dial, an independent charity offering debt advice in Great Yarmouth, where 14% of people are in need of help, the Money and Pensions Service has said.

He says the organisation has seen the number of people accessing its support rise year on year.

"Great Yarmouth's in a really unique situation at the moment, primarily due to deprivation, which really stems from Great Yarmouth being primarily a seaside holiday destination," Hubbard said.

"What we normally find as a debt organisation is that people are in work throughout the summer months, working at holiday parks down the seafront, and then come the winter, there's not a lot of work out there because the season's over and people fall into financial hardship and struggle to get by."

A man wearing a grey jumper and shirt looks towards the camera and smiles while sat inside an officeLouis Hubbard, debt advisor for Great Yarmouth charity Dial

Another key factor that leaves people vulnerable to falling into debt is mental health, Hubbard added.

"People essentially bury their head in the sand and that leads to debts getting bigger, potentially then being passed on to enforcement agents and bailiffs, which causes even more stress," he said.

"What you find is a lot of people find themselves in a debt cycle which they really struggle to break out of, hence why agencies and organisations such as Dial are crucial."

Growing problem

National Debtline, which offers free advice nationally, believes more people will fall into financial difficulty in the coming months due to global events affecting the cost of living.

It is urging people to seek support before reaching crisis point.

Grace Brownfield, from National Debtline, told BBC Radio Norfolk: "Unfortunately we are seeing people falling into debt for the first time because costs have been so high.

"There is often more support than people realise, but it can be quite difficult to navigate what support is available and what you are eligible for.

"That is where debt advice charities can really help."

Mark Hitchcock, chief executive of Norfolk Citizens Advice, added: "My colleagues are very welcoming people, they are not going to increase your stress or embarrassment or shame.

"They will go through the issues, they'll understand the background to your budget and they will look at a range of different options available, like Breathing Space, for those who are facing significant debt."

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Related links

Debt advice

Dial in Great Yarmouth

National Debtline

Norfolk Citizens Advice

Personal debtCost of Living Great Yarmouth

Originally reported by BBC News