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From My Local Paper Today

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This is the story splashed across the front of the blackpool gazette today.

Soaring spiral of bad debt

A GROWING trend of repossession orders and bankruptcy is threatening to swamp the Fylde.

Government figures show an 80 per cent rise in mortgage repossessions in Blackpool in the past year.

The number of individuals and businesses declaring themselves bankrupt in the resort has also rocketed by 17 per cent.

Many residents are being left with debts they cannot handle after being lured by high-interest loans secured against their homes.

There have been 239 repossession orders in Blackpool in the past three months alone, while 70 individuals or businesses have declared themselves bankrupt.

These are among the highest increases in Lancashire with neighbouring Preston seeing a like-for-like rise of 53 per cent.

Today Blackpool's Euro MP Chris Davies called for more help to be offered to couples and individuals who are struggling with their debts.

The Liberal Democrat MEP said: "People should be able to get quick and easy access to help as soon as they start having money troubles.

"All too quickly a small debt grows out of control and people don't know where to turn.

"Their credit cards have kept the high street boom going and their mortgages inflated the housing bubble, but people are starting to tighten their belts."

Mike Barry, debt project development manager at Blackpool's Citizens Advice Bureau, said the figures do not make easy reading.

He said: "The message to people must be before you even think of calling one of those companies that advertises on the television to clear your debts with a secured loan, take some independent advice on what other options are available to you."

One couple caught up in the trap of high interest loans were Frank and Jeanette Sharratt.

After taking out a £2,450 loan to clothe her children the couple, from Grasmere Road, Blackpool, spent 20 years in the poverty trap.

The couple faced a constant threat of being made homeless because of the high-interest loan with London North Securities. They were finally relieved of their debt misery last year when a landmark court judgement wiped out their debt.

Mrs Sharratt said: "To anyone thinking of taking out a loan I would urge them to think very seriously first.

Wiped

I would certainly never take out a loan for non-essential items like a car or a television."

Mr and Mrs Sharratt (above) paid more than £10,000 back in interest and loan repayments before the loan, which had rocketed to £73,000, was wiped.

She added: "Borrowing money has without a doubt made our lives a misery for a long time. If I can help stop people from falling into the same trap as us then I'm happy to help."

03 January 2006

being in the building game in blackpool i can testify blackpool has since about the summer gone completely to the dogs, everything is for sale here.and no-one is spending money on there houses no more, only the insurance work is increasing.it seems leaks and fires go up while the economy goes down :)

Welcome to blackpool 2006 where half the town earns 200 pounds a week and average house costs about 120k

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After taking out a £2,450 loan to clothe her children the couple, from Grasmere Road, Blackpool, spent 20 years in the poverty trap.

What in heaven's name was this woman spending £2450 on in 1985?

But it's set me thinking

When a recession comes do UK tourist destinations benefit, because people cut down and don't go abroad?

Edited by ThePiltdownMan

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that euro mp that said they should all get help never once came out to say something should be done for all the people priced out of the market.

just another europrat.

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Its very sad but not a surprise to hear the stories from Blackpool. I’m sure similar situations will echo across the UK for sometime to come. Many people simply just do not earn a reasonable income and have been sucked into to the house price and credit boom. The capacity to borrow is simply just to easy. Its the paying back part that can develop to become a serious problem.

Easy credit and increased property values allowing homes to be used as cash machines is a deadly combination. These factors are compounded into a vicious circle, when income levels fail to mirror the availability of credit.

We thought the effects of high interest rates were bad. The pendulum has swung the other way but this time its gone way to far.

Mr Joe.

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  • 335 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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