news release

Families and young couples lead fall in personal insolvencies across UK, reveals Experian

UK’s coastal and market towns also see biggest improvements in personal insolvencies

Nottingham, UK, 17 July 2013 – Analysis published today by Experian®, the global information services company, shows that the fall in personal insolvencies across the UK was led by young couples and families with young children during the first quarter of 2013 (January – April 2013).

Experian’s in-depth analysis of personal insolvencies by various demographic groups reveals that financial fortunes were most improved among households that fall into the Careers and Kids group.  These couples and families tend to live in comfortable homes, but are also among those most likely to rely on consumer credit.  This group saw their share of the total number of personal insolvencies in the UK fall from 7.1 per cent in Q4 2012 to 5.8 per cent Q1 2013.

Geographical analysis also shows that households in coastal and market towns saw the biggest improvements, with seven out of the UK’s top ten towns falling into these categories.

The coastal town Weymouth saw 6 in every 10,000 households experience insolvencies during Q1 2013 compared to 12 in Q4 2012.  Other coastal towns in the top ten included Blackpool, Dover and Hempstead Valley. 

Among the market towns, Bishop Auckland was at the top leading the fall in insolvencies (from 11 in every 10,000 households to just 6), followed by Harrogate and Bridgwater.

Lower income households saw fewer insolvencies
Small Town Diversity (the second biggest demographic group in the UK) saw their share of insolvencies fall from 6.2 per cent to 5.0 per cent.  These households tend to be on lower incomes and often remain living in the small towns where they grew up.

In contrast, those households living on benefits or lower incomes and made up of some of the most disadvantaged individuals in the UK, saw insolvencies fall in the first three months of this year, but by a much smaller degree – from 9.1 per cent to 9.0 per cent.

Similarly, households in the Ex-Council Community group, a sector that has typically created a comfortable lifestyle for themselves and their families through hard work and basic education, saw a similar fall in the number of households being declared insolvent over the same time period.

Jonathan Westley, Managing Director of Experian’s Consumer Information Services UK & Ireland, commented: “While it is encouraging that personal insolvencies continue to fall across the UK as a whole, the most disadvantaged socially and economically in our society are still struggling. 

“Organisations must be able to identify and segment customers based upon their specific needs and characteristics to ensure fair lending processes to the financially vulnerable and appropriately based upon a complete picture of their financial situation.”


  

ENDS

Contact:
Chantal Heckford / Maddy Morgan Williams / Philippa Williamson
Lansons Communications
020 7490 8828
chantalh@lansons.com / maddymw@lansons.com / philippaw@lansons.com 

About Experian
Experian is the leading global information services company, providing data and analytical tools to clients around the world. The Group helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.

Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 March 2013 was US$4.7 billion. Experian employs approximately 17,000 people in 40 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.

For more information, visit http://www.experianplc.com