By BRIDGET COOK
FINANCIAL stress is at its worst in Cranbourne with new figures revealing the suburb has the highest number of bankruptcies in the state.
Insolvency and Trustee Service Australia this week released the ‘Personal insolvency by postcode 2011-12’ publication, which revealed that the Cranbourne postcode had the most personal bankruptcies in the state for the second year in a row.
There were 108 bankruptcies recorded in the 3977 postcode in the 2011-12 financial year, up from 98 the previous year.
A further 51 Cranbourne residents signed debt agreements to repay over an agreed period.
Some other Casey suburbs also recorded high bankruptcy figures, with Narre Warren and Narre Warren South having 47, Berwick and Harkaway 42 and Hampton Park 27.
The coastal village’s postcode of 3980 only had three recorded bankruptcies, while Hallam only had 14, Endeavour Hills 15 and Doveton 20.
Cranbourne Information and Support Service (CISS) executive officer Leanne Petrides said there were a number of reasons why the Casey postcode featured so high on the list.
“The main reason cited is due to loss of jobs,” she said.
“This area is quite heavily reliant on the casual workforce.
“They have jobs in areas that often get cut quickly when there’s an economic downturn.
“They could be coping quite well, but when they either lose employment or their hours of employment are cut, they are finding the debt starts to pile up.
“They might manage for a little while and use credit cards to survive, but then that all just builds up as well.”
Ms Petrides said another reason many filed for bankruptcy was due to the stress they were placed under because of huge debts.
“People suffer psychological trauma because of high levels of debt, to such degree it can force people into positions where they are feeling suicidal.
“Often bankruptcy is an option as it can relieve the stress and mental anguish caused from the stress.”
Ms Petrides said the high cost of living was the main reason people were finding themselves in so much debt in the first place.
“There are very few affordable properties for rent and mortgages in this area,” she said.
“People will always prioritise housing costs first and foremost, leaving not much for other costs and bills.”
Ms Petrides urged people to get in touch with CISS or other free financial counsellors as soon as they started to have problems.
To seek assistance from CISS call 5996 3333 or visit the organisation at 156 Sladen Street, Cranbourne.
Ms Petrides also suggested calling the Money Help Line on 1800 007 007.
