Blackpool's debt crisis deepens in 2023 after UK's 30% 2022 personal insolvency spike

Lancashire Council's 2022 data paints a bleak picture for Blackpool. The town recorded an alarmingly high insolvency rate, with a significant portion being individual voluntary arrangements (IVAs). The IVA Helpline 2023 report further accentuates this trend, suggesting that Blackpool's debt issues are far from over.

The UK's Broader Debt Landscape

While Blackpool's situation is dire, it's a reflection of the broader UK scenario. In 2022, the UK recorded 139,764 individual insolvencies, a 30% surge from the previous year.

However, the first half of 2023 offers a mixed bag:

· Bankruptcies: A 10% decrease compared to the same period in 2022.

· IVAs: A slight 2% increase.

· Debt Relief Orders (DROs): An 8% decline.

These figures suggest that while some are finding their footing, others, like many in Blackpool,continue to grapple with financial instability.

A spokesperson for IVA Helpline commented "Over the past year, we've seen a marked increase in inquiries from Lancashire residents seeking guidance on their financial situations. The data underscores the urgency of the situation, but it's essential to remember that there are always options available”.

Top Tips for Navigating Problem Debt

1. Budgeting: Crafting a detailed budget is the first step towards financial clarity. By listing all income sources and expenses, you can identify areas of unnecessary spending and redirect funds towards paying off debts.

2. Engage with Creditors: Communication is key. If you're finding it challenging to meet repayments, approach your creditors. They might be willing to negotiate a more manageable payment plan, reduce interest rates, or even offer a grace period.

3. Avoid Quick Fixes: While payday loans or high-interest credit cards might seem like a solution, they often lead to a deeper debt trap. Always read the fine print and understand the long-term implications of such financial decisions.

4. Seek Expert Guidance: Organisations like Citizens Advice and StepChange are invaluable resources. They offer free, impartial advice on managing debt, from debt management plans to IVAs and bankruptcy.

5. Emergency Funds: Start building an emergency fund, even if it's a small amount each month. This fund can be a financial cushion during unexpected events, preventing further debt accumulation.

6. Educate Yourself: Financial literacy is empowering. Attend workshops, read books, or take online courses to understand the nuances of financial management better.

7. Prioritise Debts: Not all debts are created equal. Focus on paying off high-interest debts first, as they accumulate faster. Once they're cleared, redirect those funds to other outstanding debts.

The financial challenges faced by Blackpool residents are emblematic of the broader struggles many in the UK are grappling with. While the national landscape shows signs of recovery, it's evident that individual experiences vary significantly.

For towns like Blackpool, the journey to financial stability might be longer and more arduous. However, with the right tools, resources, and support, there's a path forward.

It's essential for individuals to take proactive steps, seek guidance, and make informed decisions. In doing so, they not only secure their financial future but also contribute to the broader economic recovery of their communities and the nation at large.