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Australians are experiencing fewer financial crises, new personal insolvency statistics have revealed.
There were 6,888 personal insolvency incidents in the December 2014 quarter, according to the Australian Financial Security Authority.
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That marked an 8.1 per cent decline on the December 2013 quarter.
Debt agreements climbed 2.5 per cent to 2,655, with South Australia and the Northern Territory reaching all-time highs.
However, that was more than offset by a 13.7 per cent drop in bankruptcies to 4,179 and a 10.0 per cent decline in personal insolvency agreements to 54.
Personal insolvency incidents declined in six of the eight states and territories.
There were falls of 15.6 per cent for the ACT, 14.3 per cent for Tasmania, 11.8 per cent for NSW, 10.6 per cent for Victoria, 7.7 per cent for Queensland and 4.0 per cent for South Australia.
However, personal insolvency activity increased by 14.8 per cent in Western Australia and remained stable in the Northern Territory.
The main reason for personal insolvency during the quarter was non-business-related unemployment – this affected 28.3 per cent of insolvent debtors.
Another 5.3 per cent of debtors entered a personal insolvency administration because their business was affected by economic conditions.
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