SOARING living costs and hefty credit debts are causing many Melton residents to declare bankruptcy, according to support services.
Figures released by Insolvency and Trustee Service Australia reveal about 4700 Victorians declared bankruptcy last financial year, including 73 residents from Melton Shire.
Good Shepherd Youth and Family Services counsellor Melissa McAllister said many people were struggling to keep up with loans and pay back credit cards because their working conditions had changed or they were battling rising living costs.
“Petrol prices have gone up as well as utility bills for things like gas, electricity and water and this can put a lot of strain on households,” she said.
“The clients we see from the local area have usually lost work or had reduced hours and can’t afford to pay back their debts.
“They are paying off one debt with another and it catches up and becomes too much.”
Ms McAllister believed more local small business owners were looking into bankruptcy because of the struggling retail sector.
Melton’s Combined Churches Caring referral service said the number of people doing it tough was clearly on the rise.
“Last year we had people who’d become homeless and were seeking help once a month. Now it is at least two families a week,” a spokesperson for the service said. “Just this week we had a mother with an 18-month-old baby who was living in her car with two other children.
“We gave her food and suggested a playgroup so the children could at least get out of the car.”
Combined Churches provides food and refers people to refuges and a financial counsellor.
Australians For Affordable Housing spokeswoman Sarah Toohey said areas like Brimbank, Melton and Maribyrnong were facing a housing crisis.
“Urgent action is needed by state and federal governments, with a proper housing strategy that includes more than releasing land on the city fringe, ” Ms Toohey said.
She urged the federal government to commit to a $2.5billion a year fund from 2013-14 to provide 100,000 affordable houses over five years.
