Geelong people 'looking for credit card help'

Financial counsellors in one Victoria city are bracing themselves for an increase in the number of people looking for help managing their credit card debts.

Jocelyn McMillan, from Geelong-based financial counselling service Diversitat, claims that as the economic downturn continues to make its presence felt, residents are finding that managing their money is becoming an increasingly difficult task.

She points out that as jobs loss rates rise and people have their working hours reduced, consumers will find their income falls and their ability to keep on top of debt repayments come under more strain.

And as significant numbers of Aussies are having problems with their money, Diversitat is predicting more are to come through its doors looking for help with their finances.

"The majority of people would have credit card debt of some degree," Ms McMillan tells the Geelong Independent, pointing out that consumers could owe money on just a couple of credit cards or have "seven or eight maxed-out cards".

Meanwhile, Roger Mendelson, chief executive officer of collection agency Prushka, claims the number of overdue credit accounts could rise by some 20 per cent over the course of February.

Earlier this week, Dan Denning wrote in The Daily Reckoning Australia that as the financial crisis rumbles on, households will experience problems in servicing outstanding credit card debts.