The number of Australians in financial distress and entering into Debt Agreements is continuing to grow, according to latest figures released by the Australian Financial Security Authority (AFSA).
As per AFSA’s annual report on personal insolvency, there were a total of 29,514 overall personal insolvency cases reported nationwide during the 2013-2014 financial year. The report for the December quarter of 2014 shows that there was a rise of 2.5 per cent for people entering into Debt Agreements, compared to the previous quarter; from 2,589 people to 2,655.
The majority of applicants for personal Debt Agreements were younger Australians who are employed, but living beyond their means. Many have credit card debt and telephone bills that have become unmanageable. Only 7.7 per cent of the reasons listed by people for entering into Debt Agreements were business-related, suggesting that the majority were caused by uncontrolled spending behaviour.
The AFSA figures on the number of Debt Agreements show that Australians are becoming more conservative in addressing their debt problems, with the number of people filing for bankruptcy reaching a record low since the 1995-96 financial year.
Debt Agreements are a wise option if an individual wants to protect their assets. Entering into a Debt Agreement means that you can pay back a percentage of your unsecured debt, whilst keeping enough money in the budget to pay off a secured commitment such as a mortgage.
If you have decided that applying for a Debt Agreement is the best choice for you, Debt Free Australia (DFA) can help. Our qualified insolvency practitioners can assist you in the negotiation and implementation of a Debt Agreement and ensure that it is fulfilled according to legislation.
The CEO of DFA is registered with both AFSA and the Australian Securities and Investments Commission, and all of our staff are qualified to assist with any personal debt problem. For professional debt management help, call us today on 1800 462 767.