October 15, 2012 by debthelpau
The head of ITSA, Veronique Ingram has released the latest stats on personal insolvency in Australia and it makes for interesting reading.
The statement released by Veronique Ingram shows that personal insolvencies reached 8,135 for the September quarter which was up 2.16% compared to the same time last year and up 6.78% on the June quarter this year.
What’s behind the stats?
When looking at the main causes for personal bankruptcy then the main causes listed were;
- loss of income
Many parties enter into debt agreements to avoid a full bankruptcy and the number of these agreements jumped 8.68% compared to the same time last year. The most common causes of entering these agreements is:
- excessive use of credit facilities such as credit cards and personal loans
- losses on repossessions
- high interest payments
- pressure selling resulting in people buying items of services that can not truly afford.
Will it get worse?
It’s hard to say if the situation will be get worse than it is but with significant pressure on the economy at the moment things may get worse before they get better.
What to do if your worried about going bankrupt?
If you are worried about going bankrupt yourself then you should think about doing the following:
- Discuss the situation with your partner / family – hiding your true financial state can create a lot of added pressure and stress in a relationship.
- Create a budget – look for areas in your spending where you make cuts such as clothes shopping, eating out, entertainment, pay TV and so on. Make sure your in-comings are going to be higher than your out goings.
- Avoid fresh debt – avoid taking on any fresh debt and start living within your means.
- Seek advice – if things are serious then get some advice. Try speaking to the companies you owe money to and see if there are any payment arrangements you can come to or switches in products to lower interest rates.