BANKRUPTCIES have increased significantly in South East Cornwall as the economy slides into recession.
According to the South West Economic Review, insolvency rates are up 38% in the Caradon area, the fourth highest increase in the UK.
And it has been said that with low wage rates and high housing costs the people of Caradon are struggling more than ever.
Saltash Citizens Advice Bureau has seen an increase in inquiries relating to repossession and unemployment. Manager Christina Elia said: "We've also seen an increase in more affluent people who are in work and have a reasonable income but are finding it hard to cope with the rise in interest rates and the increased cost in living."
Statistics show that 16% of people in Caradon are self-employed. In Looe the figure is 25%.

In some cases the family home is also used to operate the business, which offers a substantial risk of losing both forms of economic security.
Brian Welsh, debt caseworker at Saltash CAB office said: "The implications of the credit crunch have had a significant impact on the volume and severity of debt inquiries at the bureau since the summer of 2007."
Mr Welsh explained that before the current crisis most debts were non-priority consumer credit such as unsecured loans, credit and store card debts.
But with the rising cost of living, priority debts are becoming more of a problem.
He added: "With the increased demands on the household budget, due to higher food, energy and fuel costs, it has become apparent that priority debt problems are surfacing in ever increasing numbers. These debts include rent, mortgage, council tax and utility bill arrears.
"None or reduced payments to these creditors can result in homelessness, loss of liberty and disconnection of utilities. People who are facing these types of problems are advised to address these priority debts first before trying to pay any non-priority creditors."
Latest figures from Cornwall Citizen's Advice Bureau show the number of clients with mortgage and secured loan arrears has shot up by 67%, while those with fuel debts have increased by 86%. Government figures reveal the number of house repossession claims issued in Cornwall and Devon went up by 41% this spring, compared with the same period last year.
Mr Welsh advises people to ask for help to sort out debt problems before they get out of control.
He added: "It is always best to seek help quickly before problems get worse and with Christmas around the corner it may be of some comfort to know that help is available if required. Professional advice can be obtained from money advice workers through the Citizens Advice Bureau, National Debtline and the Consumer Credit Counselling Service."


See Original Article

Call now for help with corporate debts.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk