The number of Australians "going under" financially accelerated last year, with personal bankruptcies up 6.1 per cent over the year.

Key points: Bankruptcies rose for the 3rd consecutive year in 2017

Bankruptcies rose for the 3rd consecutive year in 2017 Queensland had the highest number of bankruptcies last year

Queensland had the highest number of bankruptcies last year Men are more likely than women to declare bankruptcy

The increase follows an almost 5 per cent rise in 2016.

Quarterly data released by the Australian Financial Security Authority paints a starkly different picture from the generally more upbeat numbers elsewhere in the domestic economy.

Breaking down the numbers, the credit reporting and debt collection business illion found more than 32,000 Australians went bankrupt in 2017.

The chief executive of illion, Simon Bligh, said there were a number of factors behind the mounting levels of personal bankruptcy.

"Consumer debt levels are rising steadily in Australia as a result of record mortgages and a surge in everyday essentials such as utilities, petrol and healthcare," Mr Bligh said.

"These factors, combined with weak wage growth, are putting pressure on the wallets of Australians."

The company's analysis combines official AFSA bankruptcy figures with its own extensive data base.

Personal bankruptcies rose by more than 6 per cent last year. ( Supplied: illion )

On ASFA's numbers almost 18 per cent of new debtors entered a business-related personal insolvency in the three months to January, up from 16 per cent reported in the September quarter.

Economic conditions were cited as the most common business-related cause, while excess use of credit was cited as the biggest driver in non-business bankruptcy.

The figures are in stark contrast to generally strong conditions reported in the latest NAB business survey — where all sectors except retail were well above their long term trend — as well as booming job creation.

Queensland has the most personal insolvencies

Queensland appeared to suffer the toughest year among the states, recording the nation's highest number (9,454) of personal bankruptcies in 2017.

Queensland had the highest number of insolvencies, followed by NSW and Victoria. ( Supplied: illion )

"The state got off to a shaky start in the form of Cyclone Debbie, which severely impacted tourism and mining projects, as well as the state government's infrastructure budget," Mr Bligh noted.

"Major events such as natural disasters not only strain government coffers but have a negative impact on the local economy, particularly small and medium-sized businesses, as well as consumer confidence.

"The Western Australian suburb of Baldivis had the highest concentration of personal insolvencies [103], as the state grappled with the fallout from a boom/bust mining and housing cycle."

The outer fringe Melbourne suburbs of Pakenham (93) and Craigieburn (88), plus Pimpama (88), located between Brisbane and the Gold Coast, rounded out the top four.

illion's analysis shows people declaring bankruptcy are getting younger, with an average age of 40.9 years in 2017 compared to 46.7 years in 2013.

Men (57.4 per cent) are also more likely than women (42.6 per cent) to go bankrupt.

Top 10 suburbs for bankruptcy nationally in 2017

Suburb, State Bankruptcies 1 Baldivis, WA 103 2 Pakenham, Vic 93 3 Craigieburn, Vic 88 3 Pimpama, Qld 88 4 Upper Coomera,, Qld 85 5 Blacktown, NSW 82 6 Caboolture, Qld 77 7 Orange, NSW 75 7 Southport, Qld 75 8 Dubbo, NSW 74 8 Point Cook, Vic 74 9 Morayfield, Qld 72 10 Kirwan, Qld 71 10 Berwick, Vic 71

Source: AFSA, illion