It seems that Northern Ireland leads the way when compared to other regions of the UK in the level of personal debt problems encountered by its citizens, according to a report issued by a national debt charity, the Consumer Credit Counselling Service (CCCS).
The charity looked at a number of measures and concluded that the London region and Northern Ireland were top of the regions in vying for this unenviable and undesirable tag. The CCCS dealt with more bankruptcy cases in Northern Ireland than anywhere else in the UK, recommending that process to almost 13% of its clients. It also recommended individual voluntary arrangements (IVAs) to a further 8% of its clients.
In terms of disposable income, Northern Ireland clients had on average £55 per month less than they needed to cover the cost of their living expenses, again an unwanted statistic and a high for the UK. A spokesperson for the charity commented: ‘Although anyone, whatever their background, age and location, can struggle with debt, there are parts of the country where personal debt problems appear to be more intractable. Debt clusters areas such as Northern Ireland and London, need special attention in terms of preventing people from falling into unmanageable debt particularly by making people aware of the free debt advice and support that is available both on helplines and online’.
The charity stated that people who are unable to meet their monthly outgoings are at risk of falling into further debt and many people delayed seeking help until the problem became very serious. Overspending was just one of the causes of insolvency; the charity identified marital breakdown, loss of employment, short time working, a family bereavement or serious illness as some of the other underlying issues, compounded by the effects of the recession and increases in the costs of living including the rising costs of government services.
A recent issue of the Belfast Telegraph carried a list of seventy four persons against whom bankruptcy orders had been made in the previous week. The list of occupations was diverse and included draper, plumber, haulier, builder, joiner, electrician, taxi driver, cashier, innkeeper, restaurateur, publican, taxi proprietor, plaster boarder, hairdresser, takeaway proprietor, subcontractor, accountant, fish and chip shop proprietor, insurance adviser, refuse loader, retired civil servant, foreman, nurse, dietician, quantity surveyor, joiner, bus driver, lorry driver, production operator, student, contractor, florist as well as some unemployed and retired persons and those whose occupation was unknown.
A further substantial numbers of people enter into IVAs in Northern Ireland every week – over 1,000 in 2010 – so the total number of insolvent individuals in the province is soaring with little respite in prospect at present.