Salvos' Moneycare counsellor Sandra Saker said her office, which services the greater west, had been inundated with calls in the past six months from people unable to pay a multitude of debts.

She said these people were in severe financial stress and the Salvo centres could only handle a third of calls received each week.

"It isn't just the people who traditionally have done it hard, it's now average families who are getting caught up in rising interest rates, petrol prices and food costs, as well as falling property values,'' Ms Saker said.

"It is not unusual for regular families to come to us having bought a house for $500,000, on which they owe $400,000, but now is only worth $300,000.

"If they are forced to sell they have a residue debt.

"With credit cards people have often reached the limits on six or seven, owing from $5000 to $15,000 per card.

"One person who came in recently had reached the limit on 25 cards.

"It has been easy to get credit, and many families with two incomes and working overtime have large borrowings.

"When something changes, such as losing overtime, or a job, or getting sick, they have huge trouble meeting payments.''

Ms Saker said the most important thing to do was to seek help as soon as there was any financial strain.

Then it was easier to negotiate with creditors.

People should contact a financial counsellor immediately if they thought they might have difficulty making a repayment.

Preferably they should go to a counsellor who does not charge a fee.

Financial counsellors at the Moneycare centres are not investment advisers, but advise people on how to deal with debt.

There is also a Credit and Debt Hotline on 1800 808 488.

In coming weeks we will look at what families can do and where they can get help in the current climate of high debt, increasing interest rates and surging prices of food, petrol and other essentials.

Share your opinions, experiences and financial survival tips with other readers by posting a comment below.