Save
Uh-oh: more of us are going bankrupt
Huge mortgages and an increasing cost of living saw more than 32,000 Australians declare bankruptcy in 2017 and the eastern states were the worst hit.
Uh-oh: more of us are going bankrupt
Huge mortgages and an increasing cost of living saw more than 32,000 Australians declare bankruptcy in 2017 and the eastern states were the worst hit.
Data registry and analytics business, ilion, yesterday (30 January) released its Personal Bankruptcy Analysis for 2017, which revealed that the number of personal bankruptcies increased by 6.1 per cent in 2017.
That’s on top of a 4.7 per cent increase in 2016. However, 2014 and 2015 recorded drops in the number of personal bankruptcies.
While Queensland, NSW and Victoria all saw high rates of personal bankruptcies, Queensland was the worst stung.
With 9,454 personal bankruptcies, Queensland had more total bankruptcies than Western Australia (3,900), South Australia (2,100), the Northern Territory (400), Tasmania (800) and the ACT (400).
NSW recorded 9,100 bankruptcies and Victoria recorded 6,100.
ilion reached its findings by compiling official bankruptcy data and running it through its data matching capabilities.
Commenting on the findings, ilion CEO, Simon Bligh said: “Consumer debt levels are rising steadily in Australia as a result of record mortgages and a surge in everyday essentials such as utilities, petrol and healthcare. These factors, combined with weak wage growth, are putting pressure on the wallets of Australians.”
Continuing, Mr Bligh added that natural disasters can also put strain on wallets. Cyclone Debbie hit Queensland early last year, and severely damaged the state’s infrastructure budget as well as tourism and mining projects.
“Major events such as natural disasters not only strain government coffers but have a negative impact on the local economy, particularly small and medium-sized businesses, as well as consumer confidence,” Mr Bligh said.
“While it’s impossible to anticipate every possible risk, we encourage everyone to have an emergency fund to draw on in these instances to pay unexpected bills or damages.”
Looking further into the statistics, the Western Australian suburb of Baldivis had the highest concentration of bankruptcies (103). ilion noted that this statistic could be tied to Western Australia’s post-mining and housing boom economy.
ilion’s data also revealed that the people declaring bankruptcy are growing younger. While the average age of those declaring bankruptcy was 46.7 years in 2013, by 2017 the average age was 40.9.
Women (42.6 per cent) were less likely than men (40.9) to declare bankruptcy.
“The first step for anyone facing financial difficulties is to understand their overall financial position and devise a plan. Doing this on your own can be challenging, so it is important to seek advice from a trusted source,” Mr Bligh concluded.
Top 10 suburbs for bankruptcy
According to the ilion analysis, these are the top 10 states with the highest concentration of bankruptcy declarations:
SUBURB, STATE BANKRUPTCIES
| SUBURB, STATE | BANKRUPTCIES | |
| 1 | Baldivis, WA | 103 |
| 2 | Pakenham, VIC | 88 |
| 3 | Craigieburn, VIC | 88 |
| 3 | Pimpama, QLD | 88 |
| 4 | Upper Coomera, QLD | 85 |
| 5 | Blacktown, NSW | 82 |
| 6 | Caboolture, QLD | 77 |
| 7 | Orange, NSW | 75 |
| 7 | Southport, QLD | 75 |
| 8 | Dubbo, NSW | 74 |
| 8 | Point Cook, VIC | 74 |
| 9 | Morayfield, QLD | 72 |
| 10 | Kirwan, QLD | 71 |
| 10 | Berwick, VIC | 71 |
Learn more about personal insolvency and how to declare bankruptcy in Nest Egg's basic guide: 'Bankruptcy - what it is and how to avoid it'.
RELATED ARTICLES
Savings account
Protecting your savings from inflation in Australia
Inflation is an economic phenomenon that erodes the purchasing power of money over time, directly impacting the real value of your savings. In Australia, as in many parts of the world, periodic rises ...Read more
Savings account
Maximising your savings effortlessly: The power of automation in Australia
In the fast-paced world we live in, managing finances can often become an overlooked aspect of our daily routines. However, the advent of technology has introduced a seamless solution to this ...Read more
Savings account
Maximising your savings account: What you need to know
Saving money is a fundamental aspect of financial security and wellbeing. Read more
Savings account
Are ‘nudges’ the secret ingredient to financial wellness?
Are better financial habits a simple reminder away? Read more
Savings account
Afterpay launches Money app, bank accounts and retroactive BNPL
Afterpay is upgrading its app-based arsenal. Read more
Savings account
2020 saw the fastest increase in bank deposits since the GFC
Bank deposits of Australian households increased by more than 12 per cent last year. Read more
Savings account
Australians are putting savings goals ahead of holiday plans
While travel restrictions are soon set to ease, Australians are still putting their savings goals first. Read more
Savings account
More than half of Aussie Millennials don’t have a savings plan
Money is remaining a taboo subject for Millennials, which is leading to poor saving habits, a big four bank has revealed. Read more
Savings account
Protecting your savings from inflation in Australia
Inflation is an economic phenomenon that erodes the purchasing power of money over time, directly impacting the real value of your savings. In Australia, as in many parts of the world, periodic rises ...Read more
Savings account
Maximising your savings effortlessly: The power of automation in Australia
In the fast-paced world we live in, managing finances can often become an overlooked aspect of our daily routines. However, the advent of technology has introduced a seamless solution to this ...Read more
Savings account
Maximising your savings account: What you need to know
Saving money is a fundamental aspect of financial security and wellbeing. Read more
Savings account
Are ‘nudges’ the secret ingredient to financial wellness?
Are better financial habits a simple reminder away? Read more
Savings account
Afterpay launches Money app, bank accounts and retroactive BNPL
Afterpay is upgrading its app-based arsenal. Read more
Savings account
2020 saw the fastest increase in bank deposits since the GFC
Bank deposits of Australian households increased by more than 12 per cent last year. Read more
Savings account
Australians are putting savings goals ahead of holiday plans
While travel restrictions are soon set to ease, Australians are still putting their savings goals first. Read more
Savings account
More than half of Aussie Millennials don’t have a savings plan
Money is remaining a taboo subject for Millennials, which is leading to poor saving habits, a big four bank has revealed. Read more
More articles
OUR PLATFORMS AND BRANDS
- Accountants Daily
- Accounting Times
- Adviser Innovation
- Australian Aviation
- Broker Daily
- Cyber Daily
- Defence Connect
- Fintech Business
- HR Leader
- Independent Financial Adviser
- Investment Centre
- Investor Daily
- Lawyers Weekly
- Money Management
- Nestegg
- Property Buzz
- Real Estate Business
- Smart Property Investment
- SMSF Adviser
- Space Connect
- Super Review
- The Adviser
- Wellness Daily
- World of Aviation
EVENTS AND SUMMITS
- Accountants Daily 30 Under 30 Awards
- ACE25
- Adviser Innovation Summit
- Australian Accounting Awards
- Australian Aviation Awards
- Australian Broking Awards
- Australian Defence Industry Awards
- Australian Law Awards
- Australian Space Awards
- Australian Space Summit
- Better Business Summit & Awards
- Broker Daily Business Awards
- Corporate Counsel Summit & Awards
- Cyber Security Summit & Awards
- Defence Connect Budget Lunch
- Defence Connect DSR Summit
- Fund Manager of the Year Awards
- ifa Excellence Awards
- ifa Future Forum
- Investor Daily ESG Summit
- Lawyers Weekly 30 Under 30 Awards
- Lawyers Weekly Women in Law Forum
- New Broker Academy
- Partner of the Year Awards
- REB Awards
- Reinnovate
- SME Broker Bootcamp
- SMSF Adviser Technical Day
- Super Fund of the Year Awards
- Women in Finance Awards
- Women in Law Awards
- Accountants Daily Podcast Network
- Australian Aviation Podcast Network
- Broker Daily Podcast Network
- Defence Connect Podcast Network
- HR Leader Podcast Network
- REB Podcast Network
- Relative Return
- Space Connect Podcast
- The Adviser Podcast Network
- The ifa Show
- The Lawyers Weekly Show
- The Smart Property Investment Show
PODCASTS
LEARNING AND EDUCATION
MOMENTUM MARKETS NETWORK
LINKS
STAY CONNECTED
Make your nest egg grow. Register now for nestegg updates.