The Hidden Cost of Unemployment

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Economists are forecasting an increase in unemployment, as the official rate hedges beyond 5.5%. Written & Sourced by Debt Fix

In uncertain economic times, with rising unemployment there is hope. As advertisements for new jobs drop, a recent AAP survey of economists predicted that unemployment will increase to 5.6% and beyond, peaking at around 6.3% (

How will this impact families and households?

Unemployment will negatively impact household income, which in turn will make it difficult for working Australians to afford the essential costs and service financial commitments.

For business, increased unemployment will mean increased bad debt, layoffs and potentially business closures as the economy contracts. Government will most likely try to stimulate the economy by continuing to lower interest rates, however with interest rates at record lows presently, how much lower can interest rates go? And if interest rates reduce further, will the banks pass on the reduction or will they act independently?

Of course all this is academic and in stark contrast to the reality which is faced by so many people suffering the consequences of a weak economy. The true face of unemployment exists within each affected household and the family relationships that come under pressure and strain.

Families will have to adapt quickly if the economic predictions come to pass.

What can people do if they find themselves suddenly without work? Grant O’Donnell, director and founder of Debt Fix (one of Australia’s largest debt agreement companies) said yesterday, “…People need to keep a regular dialogue with their creditors; monitor budgets and seek help from professional organisations if they start to feel the pressure of mounting bills and debts…”

Money problems are said to be the number one cause of relationship breakdowns, so with this in mind, it is not only important to maintain open and transparent communication with the banks and creditors, but also your partner.

“… At the end of the day, there is always a solution and if you happen to be struggling with debt, the worst thing you can do is ignore the problem and hope that it corrects itself…” Mr O’Donnell said.

The last thing you should do is panic and make an impulsive decision, such as file for Bankruptcy.

“…In many cases, Bankruptcy is an appropriate choice, and its a relevant option for people suffering unmanageable loan debt – but caution should be taken and Bankruptcy (whilst it certainly has its place) should only be considered as a last resort…” Mr O’Donnell went on to say.

It’s all too common to find that people have been convinced into believing that Bankruptcy is the best and only option having regard for their circumstances, but its important to note that there are other options aside from bankruptcy that are less severe on one’s financial future and credit reputation.

When it comes to dealing with unmanageable debt, Mr O’Donnell said “…The night is always darkest before the dawn, but with guidance and expert support, there are always options…”, in other words there is professional support for those struggling with debt and no matter how hopeless the situation may appear, with guidance and practical advice it is possible to turn your situation around.

For more information, contact Debt Consolidation Company Debt Fix 1300 332 834

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Nicholas Bregozzo
Debt Fix
1300 332 834 723
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