In a recent analysis of Debt Rescue data, we have identified there has been a 271% increase in clients entering new Debt Agreements, who have accumulated an Afterpay debt over the last 6 months compared to be previous 6 months*. Match this with Afterpay’s latest financial results, and we see that they received a profit increase of 365% from late fees and penalties over the same time period. With the steep rise of social media and online shopping at its peak, it is no wonder that Afterpay has taken a dramatic leap forward. Our data analysis also shows that 78% of our clients with an Afterpay debt in their Debt Agreement are under 35. This appears to be a worrying trend, due to the increased online shopping experiences of today.
Survey Reveals Australia’s “Unhealthy” Relationship with Debt
Escalating personal debt is having a huge emotional impact on Australians, , with over 65% of Australians dealing with a form of financial stress, according to research conducted by the Centre for Social Impact. Leading Australian debt solutions company Debt Rescue says our relationship with debt is rocky, with a growing number of Australians suffering psychological health issues, low self-esteem, anxiety and isolation because they are in over their heads.
More than Just a Financial Problem
Debt Rescue General Manager Brett Gavin said debt had more far-reaching implications than a loss of assets or financial security, putting the health of thousands of Australians in jeopardy each year.
Currently 68% of Australians are facing some form of debt stress.
“Debt isn’t just about owing other people money. It’s about what people owe to their families, their friends, their partners and themselves,’’ Mr Gavin said.
“Often people don’t realise this until they hit the lowest of the lows so it is important to seek professional help and take positive steps to address debt stress before it gets out of hand,’’ he said.
Financial Stress in Australia
A recent online survey of Debt Rescue clients found that 83% of respondents said their debt levels had caused them stress. Two thirds said it had caused them to be depressed and they had experienced anxiety from their debt levels.
The majority of respondents indicated that debt had caused some kind of relationship issue for them. More than half of the respondents indicated that it was difficult to find a service that would assist with debt issues. 86% of respondents said it was important that services addressed the psychological and emotional impact of debt, rather than just the financial implications.
“These results tell us that Australians have an unhealthy relationship with debt, but the good news is, there is help at hand,’’ Mr Gavin said.
“There are some important tips to keep in mind and some ways of managing the process that can deliver real, tangible solutions to what might otherwise seem impossible circumstances”.