Problem debts are building up all over the UK, but where is the problem worst, and what can we do about it?
Research by the debt charity Consumer Credit Counselling Service (CCCS) used demand for its debt advice, the distribution of insolvency recommendations and levels of disposable income among people who sought its help to pinpoint the UK's problem debt hotspots.
The two areas that stood out were London and Northern Ireland. London had the highest levels of demand for debt advice per population, and the second highest level of bankruptcy. It also had the highest number of debt relief order (DRO) recommendations (bearing in mind that this option isn't currently available in Northern Ireland).
Northern Ireland, meanwhile, had the highest levels of bankruptcy and individual voluntary arrangement (IVA) recommendations. And London and Northern Ireland were the only two regions were CCCS clients, on average, didn't have enough income to cover their living expenses.
Most in need of debt advice
Other areas with a massive demand for debt advice include Yorkshire, where 23.6 people in every 10,000 sought help, the North East and West Midlands with 23 people and the North West where 22.9 did.
After Northern Ireland and London, other areas with bankruptcy issues are: the South East, where 11.5% of clients are recommended to take this route and East Anglia and the South West where 11.3% are.
When looking at disposable income, CCCS clients from Northern Ireland had the least, with a monthly income £55 less than they needed to cover the cost of their living expenses. CCCS clients from London also had a monthly income £28 less than the amount they needed to live on. The next three areas with the smallest disposable incomes were the West Midlands with £29 a month, East Anglia at £28 a month and the South East at £21.
What can you do about it?
If you are struggling with debt, the first step is to face up to it. Look at all your statements and demands, and own up to those who are closest to you that you have a problem.Your next step will depend on just how serious the problem is. For smaller or more manageable debts, revisit your budget, look at where you can make savings, move your debt to pay as little interest as possible, and make a foolproof plan for paying it back. If things have got more out of hand than that, then you're going to need debt advice. You could do a lot worse than the CCCS for this help, or try the options we blogged about recently.