A record number of Australians are entering into debt agreements after spending beyond their means, jeopardising their job prospects and future financial security. Statistics from the Australian Financial Security Authority show that the number of Australians in debt agreements in the September quarter was 3010 - the highest number on record in a quarter and up 22.4 percent compared to the same quarter last year. Just 7.7 percent of debt agreements signed were business related, suggesting the majority were entered into due to reckless spending. Scroll down for video . The number of Australians in debt agreements in the September quarter was the highest number on record in a quarter . Debt expert Roger Mendelson said young people were the main applicants for debt agreements. 'In our experience invariably this is customers and fairly young people who aren't homeowners,' said Mr Mendelson, CEO of Prushka Fast Debt Recovery. 'Their main debts tend to be credit card and telcos - so these are young people who have got one credit card and when that's maxed out opened another. 'They play they game but in the end they're bound to fail.' Under a debt agreement a consumer and their creditors settle on an amount of money to be repayed, which can be less than the total amount owed. Once the person has repayed this creditors cannot recover the rest of the money owed. Consumers who enter into a debt agreement cannot earn more than $79,920 and their assets can't total more than $106,561. But proposing a debt agreement is considered an act of bankruptcy and puts a black mark on people's public record. Names and details are permanently listed on the National Personal Insolvency Index, and also appear on credit reporting agency's records, which can affect people's ability to apply for credit. Young people with credit card and telco debt are the main applicants for debt agreements . Debt agreements can also prevent people from working in certain industries. 'It is under the Bankruptcy Act and it's going to hang over you for the rest of your life,' Mr Mendelson said. He added that and if the agreed payments under the debt agreement are not met, creditors can petition for bankruptcy, meaning a person's assets are vulnerable and their passports can be cancelled. Consumer Action Law Centre senior campaigner Sarah Wilson said people should be aware of fees associated with debt agreements. 'People think it's different to bankruptcy but in fact it's an act of bankruptcy,' Ms Wilson said. 'The most important thing is people need to realise that debt agreements are a product sold, they're not necessarily going to be the best option for people in financial stress. 'People can contact a free financial counsellor on 1800 007 007, they're independent and they're not going to charge you anything.'
The number of Australians in debt agreements up 22.4 percent .
Just 7.7 percent of those entered were business related .
Young people with credit card and telco debt are  the main applicants for debt agreements .
A record number of Australians are entering into debt agreements after spending beyond their means, jeopardising their job prospects and future financial security. Statistics from the Australian Financial Security Authority show that the number of Australians in debt agreements in the September quarter was 3010 - the highest number on record in a quarter and up 22.4 percent compared to the same quarter last year. Just 7.7 percent of debt agreements signed were business related, suggesting the majority were entered into due to reckless spending. Scroll down for video . The number of Australians in debt agreements in the September quarter was the highest number on record in a quarter . Debt expert Roger Mendelson said young people were the main applicants for debt agreements. 'In our experience invariably this is customers and fairly young people who aren't homeowners,' said Mr Mendelson, CEO of Prushka Fast Debt Recovery. 'Their main debts tend to be credit card and telcos - so these are young people who have got one credit card and when that's maxed out opened another. 'They play they game but in the end they're bound to fail.' Under a debt agreement a consumer and their creditors settle on an amount of money to be repayed, which can be less than the total amount owed. Once the person has repayed this creditors cannot recover the rest of the money owed. Consumers who enter into a debt agreement cannot earn more than $79,920 and their assets can't total more than $106,561. But proposing a debt agreement is considered an act of bankruptcy and puts a black mark on people's public record. Names and details are permanently listed on the National Personal Insolvency Index, and also appear on credit reporting agency's records, which can affect people's ability to apply for credit. Young people with credit card and telco debt are the main applicants for debt agreements . Debt agreements can also prevent people from working in certain industries. 'It is under the Bankruptcy Act and it's going to hang over you for the rest of your life,' Mr Mendelson said. He added that and if the agreed payments under the debt agreement are not met, creditors can petition for bankruptcy, meaning a person's assets are vulnerable and their passports can be cancelled. Consumer Action Law Centre senior campaigner Sarah Wilson said people should be aware of fees associated with debt agreements. 'People think it's different to bankruptcy but in fact it's an act of bankruptcy,' Ms Wilson said. 'The most important thing is people need to realise that debt agreements are a product sold, they're not necessarily going to be the best option for people in financial stress. 'People can contact a free financial counsellor on 1800 007 007, they're independent and they're not going to charge you anything.'
the number of Australians in debt agreements in percent of debt agreements signed were business apply for credit. Young people with credit card and telco debt are the main applicants for debt