Prushka Fast Debt Recover, one of the nation’s largest debt collection agencies, has released figures showing a spike of 15 per cent in the number of defaults in the past two weeks.

This comes as people are racking up record debt on credit cards during the Christmas buying frenzy.

The most commonly neglected bills (or at least those for whom Prushka are called to recover) are for healthcare and tradesmen.

Roger Mendelson, CEO of Prushka, warned shoppers from accumulating big credit card debts this Christmas while neglecting other bills.

“The spike in December is a result of people allocating funds to holidays and buying presents.

“They know that it takes time for any action to be taken on these smaller bills and the chance of being sued on them are very, very low

“High power bills and unemployement are also blamed for the inability to pay bills.

“What we’re seeing is that collecting these debts has become a lot harder.”

Telco and credit card bills are high on the priority list of payments, with others being relegated in their wake.

The average unpaid debt is between $350 and $400.

As Prushka showed a 15 per cent increase in debt fault the National Australia Bank showed a 30 per cent increase in credit card applications – both over the last two weeks in November.

NAB general manager of consumer lending, Angus Gilfillan, asked that consumers understand the restrictions and obligations associate with the cards before applying. They also needed to be fully aware of the revert rate and associated fees, should they be unable to repay their debt by the due date.

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