Harrington Brooks’ response to growing debt in seaside towns
Matthew Cheetham, CEO of Harrington Brooks, said in response to the news that seaside towns are some of the most indebted areas of the country:
“It’s no surprise that people living in seaside towns have the highest number of insolvencies among young people in England and Wales. People from the Isle of Wight, Torbay and Scarborough are more likely to rely on the tourism trade and seasonal work. This can mean that when the winter months roll around and there’s a shortage of jobs, income can start to dry up and people might struggle to make ends meet.
“At Harrington Brooks, we’ve noticed this trend among people from seaside towns coming to us for help with their debts over the last 18 months. This is likely to be because customers from seaside communities might find it difficult to afford credit repayments if their work is seasonal. If they haven’t included credit repayments in their budget for the months where they’re not earning at the same level, they might not be able to keep up with these.
“With an increase to the Bank of England’s base rate looking more likely in the next few months, it seems likely that those from seaside towns will find the lean winter months even harder to deal with. If they’re relying on credit to cover their household bills, a rise in interest rates could make these repayments unaffordable. And this could lead to an even greater number of people in seaside communities turning to insolvency or debt management.”