New data from the Australian Financial Security Authority (AFSA) has revealed that excessive credit use has overtaken unemployment/loss of income as the most common cause of personal insolvency.
The government agencys research found that of a total 25,225 cases of non-business related personal insolvency for the 2016-17 period, 8,870 (slightly over 35%) were due to excessive use of credit.
According to AFSA, excessive use of credit can include or be caused by:
- Losses on repossessions
- High interest repayments
- (Financial) pressure
Unemployment or loss of income, which was the top cause of insolvencies over the 2007-08 and 2015-16 periods, was to blame for 8,035 insolvencies over 2016-17.
Domestic discord …
Read the full article at: https://www.canstar.com.au/credit-cards/excessive-credit-use-now-biggest-cause-insolvency-australia/