City dwellers face higher insolvency risk

Posted 16/08/2009

People living in cities are more likely to face insolvency and bankruptcy, an accountancy firm has stated.

According to Deloitte, this is partly because large urban areas tend to have a higher cost of living.

Louise Brittain, an insolvency specialist at the company, said the financial dangers are exacerbated by the prevailing way of life in many cities.

“There is a culture of going out to eat and shopping,” she commented.

“It is easier to get into credit card debt because there are more options for spending disposable income.”

Ms Brittain added that with more and more people being hit by redundancy and the economic downturn, a greater number are unable to service their unsecured credit.

Meanwhile, a poll by Sainsbury’s Finance found that more than one in ten people in East Anglia and the East Midlands consider the state of their personal finances as “awful” or “pretty bad”.

Spokeswoman Karen Horsburgh said the best course of action would be to seek advice on how they can rectify the situation.