Sydney, Australia (PressExposure) December 03, 2009 -- Further to the release of ABS retail spending statistics it would seem, despite the rise in interest rates by the Reserve Bank, that consumers are prepared to spend thousands of dollars per head during the festive season on plastic.
Despite warnings of overspending and caution about credit card reliance, it is predicted that 2010 will bring a new higher level of debtors and personal insolvency.
Last year the the figures for insolvency were projected to rise by 6%. They exceeded 11% by the first quater and it is likley that 2010 will show a further substantial increase in bankruptcies, Debt Agreements and Hardship claims for 2010.
Ironically the number of credit defaults listed last year established a significant reduction in applications for credit according to Veda Advantage (Credit Reference Agency)
The banks should be prepared to repsond appropriately to clients claims of hardship when the money dries up. If ignored then defaults will keep on rising and that hasa bottom line impact on the whole economy.
People who are already aware of a simmering debt problem should act now rather than leave it to the realms of debt recovery.
Your peace of mind and your credit score is valuable and there are transparent, practical and objective ways to deal with debt problems. You just need to know who to talk to and get your head out of the sand.
Tom Davison BA IRRV Revenue and Insolvency Mgr Credit Repair Australia