A recent report from USA advises that personal bankruptcies have risen 8.6% in the past year and consumer debt (excluding home loans) is at an all time high of $US13 trillion, up 11% in the last 2 years. The report from the Maryland Crisis Centre stated "more and more Americans are living lifestyles they cannot afford, using borrowed money. It's not just credit cards ... homes and cars are too big for people to afford."

Australians use of credit has continued unabated, rising by more than 11% in the last 12 months. The flow on to this is that Bankruptcy and Debt Agreements grew by early 9% in the last financial year ... similar to the USA experience.

What does this all mean to Western Sydney residents?

Mike Young, Financial Counsellor with Lifeline Western Sydney reports that the number of people seeking assistance has increased significantly in the last 6 months. Causes of people's financial problems vary, with the main factors being excessive use of credit, unemployment and relationship breakdown. Whilst often it can be a combination of these factors, the real cause can be attributed to people living a lie, living life styles they cannot afford.

Credit is so readily available ... Financiers continue to find new ways to entice consumers to borrow ... it's their business ... and consumers are generally willing recipients!!

How do you call a halt!! ... it starts with being in control ... able to say NO to offers of credit. Next, find out whether you are spending more than you earn ... if you are, this can lead to you becoming overcommitted very quickly. Immediately put the knife to your expenses to ensure that you can live a lifestyle you can afford.

If you realise that you are overcommitted or need assistance in other money matters, see a financial counsellor who will work with you reviewing options available to assist resolve your problem.

Financial Counselling is a free service. To arrange an appointment call Lifeline on 9891 6212 between 9am and 5pm.