victorians sinking in consumer debt

Word is that business has been picking up very well for FSA:
"We've never had this volume (of calls) and we are struggling to deal with it. It has been phenomenal."


http://www.news.com.au/heraldsun/story/0,21985,23035127-2862,00.html

Victorians sinking in consumer debt

Jason Bryce

January 11, 2008 12:00am


CONSUMER debt is growing much faster in Victoria than in other states and is about to get worse.

The latest insolvency statistics show the number of Victorians filing for bankruptcy and registering debt agreements is soaring.

There were 1165 non-business-related bankruptcies registered in Victoria during the last three months of 2007, up 9 per cent on the December quarter of 2006.

Nationally, the number of non-business-related bankruptcies was up 6.6 per cent, and just 2.2 per cent in NSW.

The number of debt agreements registered in Victoria grew 14.46 per cent when compared with the same period a year ago. A debt agreement is a low-cost alternative to full bankruptcy for those with unsecured debts of less than $78,915.20.

Nationwide the number of agreements registered fell 3.9 per cent with big falls in SA (down 55 per cent), Queensland (down 22) and Tasmania (down 16).

In NSW and WA, about 9 per cent more agreements were registered than in the 2006 December quarter.

In total, 451 new debt agreements were started in Victoria in the lead-up to Christmas.

Deborah Southon, a director of debt administrator Fox Symes, said interest rate rises were hurting families in Victoria and NSW.

"A lot more in Sydney and Melbourne are under pressure due to house prices," Ms Southon said.

"Victorians . . . have been coping, but the last couple of interest rate rises have really pushed people over the edge.

"We've never had this volume (of calls) and we are struggling to deal with it. It has been phenomenal."