In June 2023, 901 people had to officially declare that they couldn’t manage their money properly.
The Australian Financial Security Authority (AFSA), a government agency that deals with money troubles and bankruptcy, recently shared new numbers about how many Australians are having serious financial difficulties.
The recent figures are fewer than the 1031 cases in May but more than the 769 cases in April. Even though these numbers might sound worrying, AFSA says that it’s actually a good thing because it shows people are getting the help they need to fix their money problems and get back on track faster.
Looking at the overall numbers, out of those 901 cases, 501 people went bankrupt, and 392 made deals to pay off their debts. There were also 7 people who reached agreements to handle their money problems, and 1 person had money problems even after they passed away. Some industries also showed interesting patterns. The construction industry had fewer cases by 12.9% compared to the previous month. Retail trade stayed the same, and accommodation and food services had fewer cases by 4.49%. On the other hand, health care and social assistance saw a big decrease of 22.22%, and transport, postal, and warehousing had fewer cases by 13.33%.
AFSA has been doing things to help people, like introducing 20 new protections in June 2023 to keep them from falling into more debt. Also, the number of people with money problems who were also involved in a business went down to 226 individuals, which is less than what it was in May when it was 290.
Even though the economy is tough, these latest numbers give us hope because it shows that people are getting support to deal with their money troubles. AFSA’s efforts and the protections they’ve introduced are making a positive difference. Still, we need to keep supporting and helping people facing financial difficulties so they can recover and get back on their feet.
People experiencing financial stress are encouraged to seek support early. Free confidential assistance is available through the National Debt Helpline.
If you’re facing and considering formal insolvency[?] options, reach out to a registered trustee[?] or registered debt agreement[?] administrator.
More information about our statistics are available at afsa.gov.au/statistics.
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