Recent economic data continues to demonstrate that Australia is faring better than other nations amidst the global credit crisis however it should not be interpreted as an indicator that the nation is on a smooth path to strong and continuous growth. The economic deterioration has definitely slowed but regardless, the challenges will continue at least through until 2010.
The number of Australian consumers and businesses facing financial stress continues to increase, with consumer bankruptcies up 31.5 percent (year-on-year) and the number of firms that have increased their risk of financial stress now in excess of 155,000. These figures coincide with data which reveals that unemployment numbers and bad debt write-off continue on an upward trajectory.
This report provides an overview of the financial health of Australian consumers and businesses, analyses the impact of these trends on debt performance and examines relatively simple strategies that firms can implement to improve collections effectiveness and provide an uplift in recoveries performance.