Debt Agreements surge
A growing number of people are entering into debt agreements according to the latest Australian Financial Security Authority figures. The number of personal insolvencies rose two per cent in the March quarter, despite falling bankruptcies and personal insolvency agreements. The number of Part Nine Debt Agreements rose by 15.6 per cent to 2968.
Unemployment, loss of income and excessive use of credit were the most common causes of insolvency. Only 16 per cent of insolvencies are business related.
Source: Banking Day