Posts Tagged Debt Agreement
Technical Recession Avoided?
Recent figures released by the Australian Bureau of Statistics show that Australia has avoided a recession, demonstrated by the gross domestic product showing a marginal increase of 0.4 per cent in the first quarter of this year.
Although the recession has “technically” been avoided, this news will not help those Australians who are still struggling with debt.
Many people still find themselves in jobs which are “at risk” or have been laid off already which means that the stimulus package monies have probably already been spent in the wake of rising household costs, petrol costs and credit commitments.
When it comes down to feeding the family or paying a credit card debt or loan, it is obvious some Australian families are having to make hard choices. These decisions leave them feeling they have no option left but to file for Bankruptcy, not knowing that there are alternatives to bankruptcy, such as a Debt Agreement or Loan Consolidation.
“Life shouldn’t be a struggle.” says Natalie Levett, Associate Director at Australian Financial Solutions. “There are alternatives out there and people need to be aware that bankruptcy can be avoided as long as you get help sooner rather than later.”
Add comment June 8, 2009
Credit Sending Aussies Broke
EXCESSIVE use of credit and credit cards has contributed to a leap in the number of personal bankruptcy cases. Figures from the Insolvency and Trustee Service of Australia show that there were 9,300 new bankruptcies, debt agreements or personal insolvency cases in Australia in the first quarter of 2009, an increase of 18.25 per cent on the same period from the previous year.
The main causes of personal insolvency were unemployment and excessive use of credit. The vast majority of bankruptcies were non-business-related personal bankruptcies. Credit cards should not be seen as the simple cause of bankruptcies because unemployment or ill-health could contribute to a greater reliance on credit and therefore various reasons for insolvency.
The report showed the occupations most likely to be affected by bankruptcy, debt agreements or personal insolvency were clerical workers, service workers, labourers, and mine workers. Marketing and availability of credit cards leads to people spending more than they can afford. People are sometimes offered more than 10 times the credit they ask for, and then they are encouraged to spend it, or they are sent a pre-approved credit limit increase.
Add comment June 8, 2009
