Isle of Wight debt crisis

By Martin Neville

Thursday, February 20, 2014

 

THE Isle of Wight has been identified as an insolvency hotspot.

Personal insolvency levels are among the worst in the South East, according to the Association of Business Recovery Professionals (R3).

The national trade body has produced an insolvency map of England and Wales, grading each constituency on a scale of one to eight based on the number of new personal insolvency cases per 10,000 adults.

The Island was rated Grade 6, with one of the higher levels, at between 36 and 41.99 cases per 10,000 adults.

James Stares, chairman of R3’s southern committee, said: "Nationally, over the last two decades, there has been a dramatic increase in the number of people struggling with their debts.

"There could be a number of additional reasons why the Isle of Wight has a higher level of personal insolvencies. Unemployment has always been high on the Island.

"There are now 3,090 people out of work and claiming Job Seeker’s Allowance, that’s up on November’s figures."

However, the December figure was down on the same month the previous year.

Mr Stares said: "Business closures and job cuts will have also added to the financial pressures of those living and working on the Isle of Wight.

"The very geographical nature of the Isle of Wight could also point to why personal insolvency levels are high. Personal insolvencies are a particularly common feature in seaside towns, which are often dependent on the seasonal tourist trade."

Lee Hodgson, chief executive of the Isle of Wight Citizens’ Advice Bureau (CAB), said the statistics were a sign of the times.

He put the high level down to high unemployment, the growth in cash-strapped families turning to high interest payday loans and a shake up of the benefits system.

He said: "In 2013, we helped 12 clients with bankruptcy compared to just five in 2012. Already last month we dealt with two petitions for bankruptcy."

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by Madeline Paterson

7th March 2014, at 11:32:35

Work is how we often define ourselves and how others define us. So although work is not the linear and progressive path that it once was, the loss of work is really painful and unsettling. Shock, followed by a mix of optimism, pessimism and fatalism are the natural reactions - and I've been there myself (applying for unsuitable jobs, anticipating rejection etc). We only start to adjust later on, and that's when you can start thinking through our options creatively. It can be helpful to remind yourself that a job does not define who you are. This unpleasant and worrying interruption may turn out to be an opportunity to find out more about your potential, learn new things and take a new direction. It helps to analyse, write down and remind yourself of your strengths. To get out there, talk with people and let them know what you are looking for. Work is changing too, so finding ways to learn about new technology will bring you up to date, boosting your skills and employability.

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by Keven Ball

22nd February 2014, at 11:45:17

I agree there in part David how people live well above their means. Many people see having cars and going on holiday as a normal part of life, but that is a luxury! If people cannot afford them and don't have them simple. However, I know people who do not holiday or run cars and still need to borrow money, why? The cost of living is far too high, the increasing energy bills, food bills and inflation rates are too strong next to people's earnings/wages! The government needs to improve basic wages or reduce the cost of living!

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by David Blackford

22nd February 2014, at 07:20:11

PS - Am I talking about you?

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by David Blackford

22nd February 2014, at 07:19:12

The real answer is - living within your means, or income.
When I was young it was very difficult to borrow money - no credit cards or pay day loans - what you had in your pocket was what you had until next pay day. Everyone was in the same boat and you just made do as best you could and learned to go without.
So many people now seem dissatisfied - I want now - why should I save up? why should I go without?

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by Keven Ball

21st February 2014, at 19:26:16

Why are people talking about drink & drugs here? Do they feel this is the reason why the island's people have little money?

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by Nat Denwois

21st February 2014, at 18:49:17

Hahah each to their own but most people who I know who smoke it are chilled out good honest people, I wouldn't agree that it makes people stop talking. My point is that we spend thousands if not millions on the war on drugs that isn't working, so why not change the approach make money from it grow it and bring money back to businesses approximately one million Brits travel to amsterdame each year. I can honestly not think of any other ways the Isle of Wight will be good again

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by Nat Denwois

21st February 2014, at 18:22:25

I think alcohol is a bigger problem tbh! who does cannabis hurt?

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by Nat Denwois

21st February 2014, at 14:41:23

Legalise and tax cannabis, problem solved , guarantee that our tourist trade would come back!

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by alan naylor

21st February 2014, at 13:51:36

I will add a little join at west wight and new forest east would soon see a shader change of pale

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by alan naylor

21st February 2014, at 13:46:13

What a waist offf space this artical is, the situation d ont need to be diplayed on a colured map ,we all know what dire straits we are all in its sulutions we want not someone telling us all where we stand.
Anyone can do that

Any views or opinions presented in the comments above are solely those of the author and do not represent those of the Isle of Wight County Press.

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