OPINION: The Price of Survival -growing debt and overwhelming anxiety
First published by News.com on 21 October 2026
The Price of Survival -growing debt and overwhelming anxiety
By Stephanie Tonkin, CEO Consumer Action Law Centre
It says a whole lot about life today and cost-of-living pressures when in some cases working two jobs just doesn’t cut it. The state election in Victoria is pivoting around which party can best answer the cost-of-living crisis and our new report The Price of Survival investigates how people are coping and it paints a bleak picture.
Having a job used to be a clear path towards prosperity, even home ownership. Not anymore.
Our financial counsellors on the National Debt Helpline are receiving more calls and contacts than ever, from people more stressed and anxious than ever, and I am really concerned that nearly 40% of people calling us for help, are either working or self-employed. Consumer Action delivers the National Debt Helpline in Victoria and online chat for Victoria and Queensland. In 2025-26 we helped 13,451 people with their debts, that’s an increase of 13% for calls and 4% for chat consults from the previous year.
Our financial counsellors are hearing from people stretched beyond their limits They provide an empathetic, non-judgemental voice – one that can provide practical and productive advice. Human-to-human interaction is crucial for this work it can’t be replaced by AI. circumstances.
On the Helpline, rising interest rates are making mortgage payments the chief concern from callers.
Since 2020 working households paying a mortgage have seen their income go up 20%, while living costs have risen more than 33%- the hardship can only be described as structural – the income doesn’t cover essential living costs. Is it no wonder people are feeling stressed?
People are being forced to use credit as a ‘survival tool’: 19% of people sought help with credit card debt and 15% with personal loan debt. People with very different lives and incomes are now being forced to resort to credit to cover the basics.
The Australian Taxation Office (ATO) is failing people with tax debts: Almost 1 in 5 people called the National Debt Helpline about ATO debt in 2025-26 – 18% of all callers, with a typical debt $5,000- $20,000.
This has spiked up from just 3% of all callers in 2020-21. The ATO’s rigid approach is causing serious stress and blocking financial counsellors from supporting people to make realistic plans to pay tax debt.
ATO debt wasn’t even in the top ten major issues where we published our first Cost-of-Living report in March 2024, but now it’s number three on the Helpline.
A shining light in the deep financial stress and anxiety found on our frontlines is the care and skill of our financial counsellors supporting hundreds of clients each week. The evidence from our report shows they are making a real difference to families’ lives, and they’re needed more than ever.
Our clients tell us that just one phone call with our workers changed their trajectory and outlook. Over 80% said they felt empowered after speaking with our financial counsellors, 70% reported improved financial circumstances.
ENDS
Media contact: Mark Pearce, mark@consumeraction.org.au Tel: 0413 299 567