Debt challenges in Great Yarmouth
A seaside town has the third highest rate of individuals requiring debt support in England and Wales, a situation experts attribute partly to its status as a seasonal holiday destination.
Government data indicates that residents in the Great Yarmouth area access debt respite services at a significantly higher rate than other parts of Norfolk and the country overall.
Louis Hubbard, a debt advisor based in the town, explains that the seasonal employment market contributes to financial difficulties during the winter months.
There are concerns that more people may encounter financial problems as costs increase further, influenced by global events impacting bills, including conflicts in Iran and Ukraine.
Debt disparity
Data from the Insolvency Service reveals that 293 people in Great Yarmouth entered a debt respite scheme last year.
This corresponds to a rate of 36.2 per 10,000 people, ranking third highest nationally.
The scheme, known as Breathing Space, provides temporary protection from creditors for up to 60 days and offers debt advice to assist with managing future payments.
The highest rate of scheme access was recorded in Halton, Cheshire (54.9 per 10,000), followed by Blackpool, another seaside town (38.1 per 10,000).
Within Norfolk, 1,322 people entered Breathing Space. Norwich had the second highest rate in the county at 23.2 per 10,000, followed by Breckland at 16.4 per 10,000.
Since 2021, the number of people in Norfolk using the service has nearly doubled, increasing from 8.8 to 17.2 per 10,000.
Nationally, the rate has also more than doubled since 2021, rising from 8.7 to 18.2 per 10,000 people.
In the past year, one in every 550 adults, equivalent to 89,132 people, entered Breathing Space. The highest rates were among 25 to 44-year-olds, with the lowest among those over 65.
'Unique situation'
Hubbard works for Dial, an independent charity providing debt advice in Great Yarmouth, where 14% of residents require assistance, according to the Money and Pensions Service.
The charity has observed a year-on-year increase in the number of people seeking support.
"Great Yarmouth's in a really unique situation at the moment, primarily due to deprivation, which really stems from Great Yarmouth being primarily a seaside holiday destination," Hubbard said.
"What we normally find as a debt organisation is that people are in work throughout the summer months, working at holiday parks down the seafront, and then come the winter, there's not a lot of work out there because the season's over and people fall into financial hardship and struggle to get by."
Hubbard also highlighted mental health as a significant factor contributing to vulnerability to debt.
"People essentially bury their head in the sand and that leads to debts getting bigger, potentially then being passed on to enforcement agents and bailiffs, which causes even more stress," he said.
"What you find is a lot of people find themselves in a debt cycle which they really struggle to break out of, hence why agencies and organisations such as Dial are crucial."
Growing problem
National Debtline, a provider of free advice across the country, anticipates that more individuals will face financial difficulties in the coming months due to global events affecting the cost of living.
The organisation encourages people to seek support before reaching crisis levels.
Grace Brownfield, from National Debtline, told BBC Radio Norfolk: "Unfortunately we are seeing people falling into debt for the first time because costs have been so high.
"There is often more support than people realise, but it can be quite difficult to navigate what support is available and what you are eligible for.
"That is where debt advice charities can really help."
Mark Hitchcock, chief executive of Norfolk Citizens Advice, added:
"My colleagues are very welcoming people, they are not going to increase your stress or embarrassment or shame.
"They will go through the issues, they'll understand the background to your budget and they will look at a range of different options available, like Breathing Space, for those who are facing significant debt."
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