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Borrow

Why are less Australians going bankrupt?

By Cameron Micallef · July 25 2019
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Borrow

Why are less Australians going bankrupt?

By Cameron Micallef
July 25 2019
Reading:
egg
egg
Andrew Aravanis

Why are less Australians going bankrupt?

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By Cameron Micallef · July 25 2019
Reading:
egg
egg
Andrew Aravanis

Bankruptcy administrations Australia-wide have fallen to a 24-year low, new statistics from the Australian Financial Security Authority showed.

Despite a commonly held belief that Millennials are money wasters, the Australian Financial Security Authority (AFSA) has revealed that 68 per cent of people applying for bankruptcy are 30 years or older.

The data also highlighted that Millennials reportedly have 30 per cent more in savings and are 45 per cent less likely to have a credit card, when compared with older generations.

What this means, according to Aravanis, is that a significant number of Millennials have abstained from acquiring unsecured credit card debt and instead are reliant on adequate savings.

Aravanis’ principal registered trustee, Andrew Aravanis, said that strong changes to government regulations have had an impact on younger Aussies accessing money.

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“While I don’t think the stats necessarily reflect a decline in the number of people experiencing financial difficulty, it seems the decline in personal insolvencies are likely to be indicative of more protection and options being made available to consumers compared to just five years ago, let alone 24,” he commented.

“Generational trends aside, it’s clear that strict new credit regulations and reforms, teamed with higher levels of transparency in credit reporting, are ultimately making it harder for people to incur unsecured debts like credit cards,” Mr Aravanis continued.

Aravanis said that in addition to the royal banking commission, the major drivers of change to debt statistics have included reforms to the National Consumer Credit Act 2009, amendments to the banking code, as well as consumer credit reform that incorporated comprehensive credit reporting.

All of the changes flagged have come into effect in the previous two years.  

Nest Egg has recently reported on the strong money-saving habits showcased my Millennials.  

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Why are less Australians going bankrupt?
Andrew Aravanis
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About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

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About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

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