Aggressive lenders blamed as bankruptcies rise with interest rates

Aggressive lending practices by lenders with loose credit standards, compounded by rising interest rates have led to a huge increase in the number of people in NSW filing for bankruptcy.
Total insolvencies soared by more than 20 per cent in the first quarter of the year to 2859 cases, according to the Insolvency and Trustee Service Australia.
There were 2404 new bankruptcies in NSW in the March quarter, a rise of 21.54 per cent, 446 debt agreements (up 31.56 per cent) and nine personal insolvencies (up 28.57 per cent).
"This is an alarming reflection of the NSW property crash that people don't want to acknowledge," said insolvency partner and trustee at Hall Chadwick, Geoff McDonald.
"This is a real reflection of what has happened to people who dabbled in the investment property market and who have been horribly burned when the market turned," he said.
"Many of these people have fallen victim to peer group pressure, have decided to go for an investment property and try to make a quick buck."
Source: The Daily Telegraph