THE North-East has a higher rate of personal insolvencies than other in the country.

Recently released official figures from the Insolvency Service suggest there were 22.6 individual solvencies per 10,000 people last year, comprising of bankruptcies, debt relief orders and individual voluntary arrangements.

The rate is higher than the national average (17.6) and almost double the rate for London (11.8). Yorkshire and Humberside’s rate is approximately 20 per 10,000 people.

Insolvencies have been falling in recent years with the national rate the lowest since 2005.

Andy Haslam, North-East vice chairman of insolvency trade body R3 and a partner with Tait Walker, said: “The make-up of the North-East economy has changed significantly over the last two decades and while it retains a strong manufacturing base and has built an expanding knowledge economy in recent years, there are still residual issues to be faced from the decline of the region's traditional industries which go a long way toward explaining the higher personal insolvency rates here.

"Other issues contributing to this situation include the higher proportion of people employed in the public sector in the North-East than elsewhere, the consequently greater impact that the Government’s spending cuts has had in the region over recent years and the higher-than-average proportion of people in the North-East with a long-term disability, which is recognised as being a regular contributory factor towards personal finance concerns.

"Money troubles can hit anyone at any time for any number of different reasons and it's crucial that anyone who thinks they're getting into financial difficulty seeks advice as quickly as possible to find a solution to their problems.

“This is so they have the best possible chance of finding the right way forward for themselves and their creditors."