Victorians have plunged more than $100 billion into debt through credit cards, mortgages, personal loans, student loans and everyday expenses such as council rates, phone, gas, electricity and medical bills. At least 2.3 million Australians, including 550,000 Victorians, now have black marks on their credit records for unpaid or late bill payments.

Debt collectors are now chasing $12 billion in bad debts every year nationally and more people are being taken to court and ordered to pay back debts. In Victoria 10 years ago, the total debt was around $30 billion. The current total amounts to nearly $20,000 for every man, woman and child. More than a quarter of weekly income now goes to meet mortgage payments.

Consumer groups blame easy credit, reckless lending, "seductive" deals on household items such as furniture, and low interest rates. The Australian Consumers' Association says many households are living on credit, so an unexpected event like unemployment or illness could tip them over the edge.