Written by Ian Niccol in October, 2007

Sydney is on a huge wave of easy credit causing the number of Bankruptcy matters to dramatically swell.

The Insolvency and Trustee Service Australia have reported that personal insolvency in Sydney, in particular the western Sydney has increased significantly since 2002-2003. The main reason for this trend is due to excess use of easy credit.

Following the housing boom many consumers had become asset rich, but are now fast becoming cash poor. On the back of their capital gain, consumers have borrowed against their equity to fund a lifestyle beyond their means. Many Bankrupts are reporting excess use of credit facilities as the main reason for their financial position.

Listed below are typical symptoms of easy credit fatigue:

• Transferring credit card balances to other credit cards, without canceling each card;

• Refinancing short term debt with other short term debt;

• If your mortgage payments are exceeding 30% of gross income;

• Constantly increasing the limits on credit facilities in order to pay for necessities;

• Paying interest only;

• Entered into informal payment arrangements with several credit providers;

So, how do you ride this wave without toppling over the crest into higher debt, or being dumped into the bubbling ocean of personal insolvency?

Debt management is the key to navigating the ezy credit wave. There a various agencies who can provide free financial counseling and support for people in financial distress, both government and community based.

If you feel as though you can relate to any or many of the above symptoms, it might be time for you to consider seeking some advice. That is where the above agencies can help.

If you are still unsure, or would like further assistance and details, feel free to contact this Office, or visit our website at www.condon.com.au and click on the links section for further contact information.