By REBECCA BILLS
GEELONG households and businesses were feeling the pinch with growing costs of living and unemployment, according to debt collection agency Prushka.
Prushka Geelong account controller Lorraine Ryan said the increase in everyday living costs alongside higher unemployment meant more residents were unable to make payments on their debts.
“Many people in Geelong are finding it difficult to pay for both their everyday expenses, such as food and petrol, while also paying childcare, healthcare and professional services,” she said.
“The result of this is that people tend to prioritise the more immediate household bills like petrol and electricity and hold off paying things like the dental bill, which hurts businesses.”
Mrs Ryan said businesses usually ended up putting a lot of time and effort in to chasing debt, often unsuccessfully.
She said more local businesses were holding off referring overdue accounts.
“It’s somewhat of a false economy because it simply increases the risk of those debts becoming unrecoverable,” she said.
“Many of the debts referred to us recently have been older than the recommended 60 days, which severely impacts the likelihood of recovery.”
Mrs Ryan said she expected the trend to worsen as the 2016 closure of Ford drew closer and Alcoa’s Point Henry plant looked to cut costs, crfeating “far broader” consequences than just the loss of jobs.
“These businesses are crucial to the already struggling Geelong economy, and without them there is likely to be a massive impact on local businesses,” she said.
