If incurring debts can be considered as a crime, a lot of people will be indicted for it.
Like any citizen of a developed country, Australians have their fair share of incurring debts. In fact, the government’s budget cuts to the education sector poses a threat of student debts. According to Bill Shorten, universities in regional Australia are likely to be the most affected by the government’s move. For instance, La Trobe University will lose at least $141 million on government funding. Because of this, the university will be compelled to impose a 30 percent increase in its school fees. This will make higher education too extravagant for young Australians. Another likely scenario is that students may have to swim through a pile of debts because of student loans.
Debts Among Businesses
According to a debt relief and recovery firm, it has become more problematic for businesses in regional Australia to settle their debts nowadays compared with last year. This is based on a poll involving small- and medium-sized enterprises. It also seems that consumers are having difficulties in paying back their arrears.
Moreover, the survey found out that large debts are settled more quickly, in contrast with smaller debts. As a matter of fact, around 43 percent of enterprises in regional Australia have remaining debts of at least $100,000. On one hand, more than 70 percent of the poll respondents have debts of no more than $2000. This shows that regional Australians tend to shrug off smaller debts.
Farm Debts
Due to the volatile business environment, farmers in regional Australia are at risk of incurring debts. Even if there is no existing farm debt crisis in the countryside, there are farm owners in certain areas that are going through intense financial pressures. The leading sources of these financial stresses are market and climate factors.
The Queensland Country Life reported that farms across regional Australia are in a $60 million farm debt. In fact, there’s a proposed bill regarding the creation of Australian Reconstruction and Development Board (ARDB). The proponents of this legislation said that ARDB will aim to confront the rocketing debt crisis in the rural areas.
Aside from ARDB, there has been a call for the government to assist farmers through a fund that will aid those with short-term viability concerns.
Reducing Your Debt
There are a lot of public and private agencies and organisations that can help regional Australians in ensuring more secure and stable finances. Some of these are Financial Counselling Australia, Wesley Mission Credit Line, The Salvation Army and Financial Information Services.
Nonetheless, small- and medium-sized businesses can reduce their debts by consolidating their debts. Business owners can also seek assistance from financial counselors.