Noosa financial service fears more debt pain on the way for region’s residents

The rising cost of living along with mortgage stress and government support drying up is creating pressure for Noosa residents, warns one financial service.

The increasing cost of living along with other financial factors is starting to bite in Noosa, according to one financial service. Picture: NCA NewsWire / Flavio Brancaleone

The tourism hot spot of Noosa isn’t immune to more widespread economic woes warns a Noosa Heads financial services firm.

Revive Financial chief marketing officer James O’Neile said the firm was bracing for more calls for help as the average unsecured personal debt level of the customers the businesses had spoken to in Noosa alone was 44 per cent more than the national average.

“Currently one of our biggest concerns is that mortgage stress driven by uplift in the cash rate will continue to apply additional pressures to Australian household budgets, forcing people to turn to short-term, high-interest credit options which can spiral out of control very quickly,” he said.

He said more than 70 per cent of personal customers the business spoke to had buy now pay later debts.

“Where we saw credit card balances decrease during the past 12 months, they are now slowly restoring to pre-pandemic levels as households struggle with the rising cost of living and the steep rise in rental prices driven by extremely low local occupancy rates,” Mr O’Neile said.

The increasing cost of living along with other financial factors is starting to bite in Noosa, according to one financial service. Picture: NCA NewsWire / Flavio Brancaleone

The chief marketing officer said until May this year, national insolvencies had decreased about 50 per cent on pre-Covid-19 pandemic levels due to a lack of debt collection activity and stimulation via government support payments.

However, since June company insolvencies have returned to pre-pandemic levels as government support dries up and major creditors start to collect debts.

James O’Neile says more than 70 per cent of the financial service’s personal customers have buy now pay later debts. Picture: Contributed

“Locally, business owners have fared well during the pandemic with very low insolvency levels,” Mr O’Neile said.

“However, following the borders opening in late-2021 the government’s pandemic restrictions heavily impacted hospitality businesses.

“More recently, declining consumer spending has hit personal service and retail businesses who have been referred to us by their accountant, or found us online.”

The Sunshine Coast Daily has reported on several retail businesses closing recently including Soul Fish Seafoods and Stalwart Brewing Company.

Some Noosa residents are starting to feel the increasing costs of fuel, groceries and more. Picture: SEBASTIEN BOZON / AFP

Mr O’Neile said Revive helped its customers by consolidating their debt into a single repayment and connecting them to a range of support services.

“We operate on a ‘never say no model’ which simply means if someone has come to us in this moment of need we don’t ever turn them away empty-handed, we’ll always look to provide them with a solution or support,” he said.

Originally published as Noosa financial service fears more debt pain on the way for region’s residents