Going for broke: Seventh highest rate of bankruptcy in the country

Statistics from the Australian Financial Security Authority and data research agency illion placed Orange seventh in Australia, and second in NSW, for suburbs with the highest concentration of bankruptcies.

It was a 38 per cent increase compared to 2016 for the city and represents a trend that could get worse, Money Magazine editor Effie Zahos said.

“Unfortunately we are seeing a rising trend in people entering debt problems and bankruptcy and it is probably going to get worse,” Ms Zahos said.

“Talking to illion, they found in a lot of cases it was people extending themselves too far and it was people with a low socioeconomic status.

“These problems seem to have come because of a ridiculous amount of personal debt. There is easy credit available and people are living a lifestyle that they can’t afford.”

CEO of illion Simon Bligh said there were 32,000 people who declared bankruptcy nationally, an increase of 6.1 per cent on the previous year.

“Consumer debt levels are rising steadily in Australia as a result of record mortgages and a surge in everyday essentials such as utilities, petrol and healthcare,” Mr Bligh said. “These factors, combined with weak wage growth, are putting pressure on the wallets of Australians.”

Dubbo also rated highly, with 74 bankruptcy declarations for the year while Bathurst was substantially lower with just 24.

Ms Zahos said it was difficult to understand why Bathurst was so much lower, but said Orange and Dubbo’s numbers weren’t excessively high.

She said the challenges in regional areas were different to those in the city, where high property prices and living costs were the main challenges.

“The regional areas have had a pretty hard time. Some sectors have cut jobs and that leads to a ripple effect that can last several years.

“If people aren’t spending money it puts pressure on businesses and it becomes a vicious circle.”