By Alesha Capone
Wyndham recorded the highest number of debtors entering personal insolvency within the greater Melbourne area in the June quarter this year.
There were 93 personal insolvencies recorded in Wyndham between April and June, according to the Australian Financial Security Authority. That compares with 80 personal insolvencies between January and March.
Elsewhere in the west, Melton recorded 50 personal insolvencies in the June quarter (56 previously), Brimbank 40 (48 previously), Hobsons Bay 22 (20 previously) and Maribyrnong 14 (20).
A partner in insolvency firm Jirsch Sutherland, Malcolm Howell, said increased levels of personal insolvency were due to a variety of reasons, but that credit card debt was a major cause.
“While once we used to see credit card debts of $5000 or $10,000, it’s now not uncommon for me to handle bankruptcies involving people with four or five different cards, each of them having a debt between $20,000 and $30,000 in some cases,” he said.
“We also see credit cards provided to young people starting their careers with little or no assets behind them and low income. These types of credit card holders are definite risk categories.
“It’s the start of the cycle, because often they’ll end up getting other credit cards to fund further expenses.”
National Debt Helpline: 1800 007 007
