Craigieburn has the third highest number of insolvencies across Australia, data shows
PROPERTY powerhouse Craigieburn has the third highest rate of people declaring bankruptcy in Australia, alarming data reveals.
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PROPERTY powerhouse Craigieburn has the third highest rate of people declaring bankruptcy in Australia due to record mortgages and lacklustre wage growth, alarming data reveals.
The suburb has been hit by financial stress with 88 people recording personal insolvencies in 2017, according to a report by credit information bureau illion.
Craigieburn was just behind the West Australian suburb of Baldivis which had 103 bankruptcies and Pakenham with 93.
“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,” said illion chief executive Simon Bligh.
“These factors, combined with weak wage growth, are putting pressure on the wallets of Australians.”
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Australian Bureau of Statistics data shows Craigieburn West’s population has increased by a staggering 6437.3 per cent over the past decade from 228 people to 14,905 people. Craigieburn North was up 254.9 per cent to 12,081; Craigieburn South, up 66 per cent to 17,051; and Craigieburn Central, up 9.7 per cent to 8758.
Uniting Lentara financial inclusion and community development manager Casey O’Brien said they had seen a number of people in expensive formal debt agreements that were sold to them as their only option to get out of debt.
“What we find is some of these companies do not fully explain that a debt agreement is a form of bankruptcy,” he said.
“We don’t advocate that clients take bankruptcy or debt agreements as their first choice or recourse.”
Mr O’Brien said mortgage stress was one of the most common reasons why a client sought support.
“The main impact that we see when people are experiencing mortgage stress is emotional — it can impair their ability to consider issues clearly and make sound, well thought out decisions,” he said.
Mr O’Brien said he encouraged anyone who was experiencing financial stress to seek assistance as early as possible.
National Debt Helpline: 1800 007 007.
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