Coronavirus relief helps Tasmanians pay down debt, personal insolvencies lowest in 30 years
ABCFewer Tasmanians have become insolvent and more have been paying down debts during the pandemic period, as government support measures temporarily put more money into the pockets of some people. Key points: New Tasmanian personal insolvencies were at a 30-year low for the last financial year New Tasmanian personal insolvencies were at a 30-year low for the last financial year A debt collection business is seeing more Tasmanians able to proactively pay down their debts A debt collection business is seeing more Tasmanians able to proactively pay down their debts There are concerns financial stress will increase as government stimulus and support measures are wound back But there are concerns that as those measures dry up over coming months, more Tasmanians will be under financial stress and more local businesses may wind up. The deputy chief executive of AFSA, Gavin McCosker, said nationally, personal insolvencies were down 23 per cent last financial year, and in Tasmania they were down 26 per cent. Adrienne Picone from the Tasmanian Council of Social Service said many people who had been better off under the Government's coronavirus support measures might soon find themselves facing debt and insolvency issues again. "Rising financial hardship and increased personal debt will be one of the great sleeping giants of this pandemic, particularly as we move into the recovery period," Ms Picone said.