countant is a good start. They will then work with a reputable mortgage broker to consolidate the debt into a lower interest rate loan – usually a home loan. They will also put together a budget to help record spending habits before recommending how to change these habits.

When times are tough, most people know to ‘tighten their belts’ and take steps to ensure unnecessary sp

Times are great, economy is booming, unemployment is at a record low but Personal bankruptcies are accelerating at twice the rate they were last year.

There has been a 15% rise in personal insolvency agreements and bankruptcies this year and debt agreements, which are binding arrangements between people who could not pay their debts, rocketed by 32%.

The jump in personal insolvencies mirrors figures from the Supreme Court of Victoria that show a rise in mortgage default actions.

Land repossession claims in Victoria have also doubled between 2003 and 2006. One school of thought for the rise in personal financial stress is thought to be the mindset of people when times are good – i.e. spending on luxury items increases, holidays spending increases and reliance on credit cards also goes up.

People believe they will be able to handle the additional spending and debt levels due to the stability in the economy and their personal earnings outlook. In fact, many enter the debt spiral where the high interest rates from credit card debt, make repaying the principal debt impossible and survival depends on meeting the interest payments; Coupled with no curb in these new spending habits, and very soon, a household finds itself facing an insurmountable mountain of debt with little hope of recovering without positive and decisive action.

What people should do is speak with professionals about their situation and put in place an action plan to get them out of this debt trap. Speaking to an accountant is a good start. They will then work with a reputable mortgage broker to consolidate the debt into a lower interest rate loan – usually a home loan. They will also put together a budget to help record spending habits before recommending how to change these habits.

When times are tough, most people know to ‘tighten their belts’ and take steps to ensure unnecessary spe

al insolvencies mirrors figures from the Supreme Court of Victoria that show a rise in mortgage default actions.

Land repossession claims in Victoria have also doubled between 2003 and 2006. One school of thought for the rise in personal financial stress is thought to be the mindset of people when times are good – i.e. spending on luxury items increases, holidays spending increases and reliance on credit cards also goes up.

People believe they will be able to handle the additional spending and debt levels due to the stability in the economy and their personal earnings outlook. In fact, many enter the debt spiral where the high interest rates from credit card debt, make repaying the principal debt impossible and survival depends on meeting the interest payments; Coupled with no curb in these new spending habits, and very soon, a household finds itself facing an insurmountable mountain of debt with little hope of recovering without positive and decisive action.

What people should do is speak with professionals about their situation and put in place an action plan to get them out of this debt trap. Speaking to an accountant is a good start. They will then work with a reputable mortgage broker to consolidate the debt into a lower interest rate loan – usually a home loan. They will also put together a budget to help record spending habits before recommending how to change these habits.

When times are tough, most people know to ‘tighten their belts’ and take steps to ensure unnecessary sp

ncreases and reliance on credit cards also goes up.

People believe they will be able to handle the additional spending and debt levels due to the stability in the economy and their personal earnings outlook. In fact, many enter the debt spiral where the high interest rates from credit card debt, make repaying the principal debt impossible and survival depends on meeting the interest payments; Coupled with no curb in these new spending habits, and very soon, a household finds itself facing an insurmountable mountain of debt with little hope of recovering without positive and decisive action.

What people should do is speak with professionals about their situation and put in place an action plan to get them out of this debt trap. Speaking to an accountant is a good start. They will then work with a reputable mortgage broker to consolidate the debt into a lower interest rate loan – usually a home loan. They will also put together a budget to help record spending habits before recommending how to change these habits.

When times are tough, most people know to ‘tighten their belts’ and take steps to ensure unnecessary sp

interest payments; Coupled with no curb in these new spending habits, and very soon, a household finds itself facing an insurmountable mountain of debt with little hope of recovering without positive and decisive action.

What people should do is speak with professionals about their situation and put in place an action plan to get them out of this debt trap. Speaking to an accountant is a good start. They will then work with a reputable mortgage broker to consolidate the debt into a lower interest rate loan – usually a home loan. They will also put together a budget to help record spending habits before recommending how to change these habits.

When times are tough, most people know to ‘tighten their belts’ and take steps to ensure unnecessary sp

countant is a good start. They will then work with a reputable mortgage broker to consolidate the debt into a lower interest rate loan – usually a home loan. They will also put together a budget to help record spending habits before recommending how to change these habits.

When times are tough, most people know to ‘tighten their belts’ and take steps to ensure unnecessary spending doesn’t occur. High discretionary spending is usually what occurs during booms – not recessions.

People should feel comfortable speaking to their accountant or a trusted mortgage broker or finance professional about their situation, but realising the decision is always their own.