AUSTRALIA is expected to spend more than $37 billion on takeaway food this year, making us the 11th biggest-spending fast food nation on earth.

The figure - the equivalent of 343 Whopper burgers for every man, woman and child in the country - is an increase of $4 billion in just three years.

And our love affair with lard-laden tucker shows no sign of abating. Traffic to Australian fast food joints increased between three and seven per cent in 2010 - more than the US or Canada.

The data from global research company Euromonitor coincides with an Australian Bureau of Statistics (ABS) snapshot of obesity in Australia released today that shows one in four Australians aged over 18 were obese in 2007/2008.

The numbers echo World Health Organisation figures that put us as the 39th fattest nation on earth and come as no surprise to Jane Martin, a senior policy adviser with the Obesity Policy Coalition.

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Australia now has more than 1250 Subways, 845 Domino's, 780 McDonald's and 300 Hungry Jacks and 600 KFCs here and in New Zealand.

All are contributing to our weighty problem through a combination of the growing number of outlets, increased marketing budgets and affordability for cash-strapped families, Ms Martin said.

Fast food profit

"The price of fresh food is going up faster than processed food," she said. "Meal deals where you can feed four people for $20 make feeding a family relatively cheap, and people are very price sensitive.

"We know Subway and McDonalds are increasing their number of outlets, making more money and spending more on advertising and marketing. When times were tough, their profits actually went up."

By 2025, 83 per cent of Australian men and 75 per cent of women aged 20 years and over will be obese or overweight on current trends, according to a 2008 Victorian Government report.

Every state is full of fatties - but people who live outside the capitals are fatter than their city cousins, the ABS snapshot reveals.

National crisis

In Sydney, 57 per cent of people are overweight or obese, compared to 67 per cent in other areas.

In Victoria, 58 per cent of people are overweight or obese (68 per cent in the regions); in Queensland it’s 55.7 per cent (Brisbane) and 65 per cent (regions); Tasmania, 59 per cent (Hobart) and 67 per cent (regions); Northern Territory, 58 per cent (Darwin) and 64 per cent (regions).

The biggest difference is in Western Australia, where 59 per cent of people are overweight or obese in Perth, but 72 per cent in the regions. In South Australia, 61.5 per cent are fat, regardless of where they live.

"We are consuming too many kilojoules, and many of the extra kilojoules come from energy dense (high fat/sugar) foods," Ms Martin said.

"In 2007, nearly 17,000 Australian fast food outlets served approximately 1.64 billion fast food or take away meals. People are increasingly eating out of the home, and a large proportion (44 per cent) of meals served out of the home are fast food."

Fresh food call

But Jennie Brand-Miller, Professor of Human Nutrition at the Boden Institute for Obesity, Nutrition, Exercise and Eating Disorders at the University of Sydney, said we should give Maccas and KFC a break.

"Fast food is a response, not a cause," she said. "Mcdonald’s don’t care if they sell water or soft drink, as long as they make a profit."

"Email is what’s fattening. Australians work long hours. We're tired a lot of the time - sleep deprivation has been shown to reduce metabolic rates by 25 per cent, so instead of using 1000 calories to keep the engine turning over, we only use 750.

"And stress increases our hunger because the same hormone we produce when we’re stressed - cortisol - also makes us hungry.”

Intergenerational obesity - where overweight parents "train" the foetus to be an overweight child - and a tendency to focus education programs on adolescents and over 50s were also major contributors, she said.

Deepening crisis

Ms Martin said there was nothing to suggest the rate of obesity was going to slow.

"The especially worrying trend is that those who are obese are more obese than they were," she said.

But expecting individuals to shift the kilos alone - or the hothouse, tough love approach of shows like The Biggest Loser - would have little impact, she said.

Instead, fast food outlets should be compelled to supply information about kilojoule, fat and sugar levels and introduce "traffic light labelling" that shows if levels are high (red), medium (orange), or green (low).

And consumers should have that information before they part with their cash.

"If it’s on the packaging, they’ve already bought it," Ms Martin said.

Since 1995, the rate of obesity has risen from 19 per cent to 24 per cent, with men gaining weight faster than women.

There were just as many people overweight (37 per cent) as there were people of normal weight (37 per cent) in 2007/08.

This is a slight shift from 1995, when there were more people of normal weight (41 per cent) than there were people overweight.

Read more: http://www.news.com.au/national/obesity-levels-show-australia-is-the-chubby-country/story-e6frfkvr-1226064083008#ixzz1NWRhPm7J

Mark-up

Definition: A percentage added to the cost to get the retail selling price.

Also Known As: markon, markup

Examples:

A widget bought for $5 and sells for $10 has a mark-up of 100%. (Add $5 to the $5 cost to get the price.) A widget bought for $2, which sells for $3, has a mark-up of 50%, (Add $1 to the $2 cost to get the price.)

Huge store mark-ups keep Australians shopping online

Despite concerns that online shopping is hurting local jobs, most consumers say they won't stop buying items over the net. Picture: The Advertiser

RETAILERS are marking up products by as much as 142 per cent and most shoppers don't even know it, a new study has found.

This comes as retailers face a battle to get consumers back in stores instead of clicking online.

The Australia Institute study found that clothes and shoes had the biggest mark-up, at 142 per cent. Electronic goods were marked 85 per cent higher, with the average CD 144 per cent dearer at Sanity than from Amazon.

This comes after an AMP Capital survey last week showed retailers believed consumers demanded discounts after the price wars unleashed during the sales downturn, forcing them into a 'discount cycle'.

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And, despite concerns that online shopping is hurting local jobs, most consumers say they won't stop buying items over the net.

Institute executive director Dr Richard Denniss said frugal shoppers were seeking refuge online even though it was hurting bricks-and-mortar retailers.

"Traditional retail is a very expensive way of delivering products to customers and ... online retail will transform the way Australians shop," he said.

The survey of 1400 people, conducted in March, found consumers were in the dark about how much products were really marked up.

Most believed furniture was marked up 5 per cent - not the actual 76 per cent.

"Given the huge disparity between people's perceptions of what is a fair mark-up and what they are being charged in bricks-and-mortar shops it's not surprising that they are choosing clicks over bricks," Dr Denniss said.

Australians are also paying more than shoppers in other countries - up to 100 per cent above the US price and 30 per cent higher than the UK.

The report linked the differences in prices to online shops having lower labour costs and rent. Consumers also don't have to pay the 10 per cent GST tax for goods worth less than $1000.

Online shopper Chloe Near, 24, said the real bargains were just a click away.

"I love to shop online. Having the ability to look at numerous fashion brands at once is not only efficient, but enables you to compare and save," said Ms Near.

Australia's retail sector has an annual turnover of $243 billion, the ABS says.

For more on retailers marking up products by as much as 142 per cent go to the Herald Sun

Read more: http://www.news.com.au/business/study-finds-massive-store-mark-ups-with-most-shoppers-committed-to-the-net/story-e6frfm1i-1226062279879#ixzz1NJlJx3na

Australian online retailers move product offshore to use cheaper shipping rates

Australian online retailers are moving towards a shipping system where they keep stock offshore and ship on demand rather than mail products through the more expensive domestic channels like Australia Post, one industry veteran has warned.

The move comes as more offshore retailers are beginning to attract Australian dollars by reducing shipping costs to virtually nothing and even mailing products for free – opponents say this trend is stifling competition in the local retail sector.

Jason Picknell, chief executive of freight forwarding company Parcel Express, says he is noticing more companies now opting to keep stock offshore and then ship it on demand rather than pay excessive domestic fees.

"It's escalating. You have the big boys ramping up free shipping into Australia, and obviously as more companies start coming on board from America they're looking at the cost effectiveness of the postal system."

"Certainly Amazon have been doing this for quite a long time, and it's been in place for many years. But we're seeing some Australians starting to do that now."

Picknell identifies local online bookstore Fishpond as one user of this shipping scheme, and he says there are others which do not wish to be named.

A spokesperson for Fishpond said this morning that while it keeps popular stock on-hand, many books are kept offshore and imported for much cheaper rates.

The trend also comes as retail giants Harvey Norman and Myer have both said they will open Chinese-based websites to save on shipping and GST.

"Previously these companies were bringing products in under a freight forwarding strength, but they are now getting rid of that process. They would warehouse it and push it out, but now they'll just ship each product through normal postage services."

"There are significant savings here, perhaps $1-2 each book for a book company. The savings can be significantly high."

Australian online retailers are being pressured into providing free shipping as offshore-based retailers such as the Book Depository continue to make a killing by eliminating postage costs. Some Australian companies, such as online shoe retailer StyleTread, are already getting rid of shipping but for many it would reduce their margins too much.

"When you start advertising free shipping you've got to make up the costs somewhere."

But although this seems like the perfect arrangement for local retailers, there is a problem – Picknell says it will drive up the cost for domestic shipping and hurt retailers which choose to import goods by bulk.

This is because Australia Post uses different shipping qualifications depending on where an object comes from.

For example, a normal book weighing over 500 grams will be classed by Australia Post as a parcel for domestic sipping. But if a business sends that same book via America through Royal Mail, or through New Zealand Post, then Australia Post classifies this via Universal Postal Union conventions – and there is a 30% difference in price.

"There is going to be a very fine line between jeopardising the domestic market and promoting the international market for parcels," Picknell says.

While he warns this won't happen overnight, Picknell says domestic shipping prices could rise to accommodate for the flood to overseas-based shipping routes.

"If you're sending something domestically, the market rate for delivery to consumer is more expensive than if you're sending that product from offshore, and that's the bottom line.

http://www.smartcompany.com.au/information-technology/20110524-australian-online-retailers-move-product-offshore-to-use-cheaper-shipping-rates.html

seek

Keywords

Get the results you're looking for!

Keywords can narrow your search results, helping you to find the right job the first time. Keywords are particularly useful if you are searching for a specific type of role, skill or job location. Or you might want to include a company name in your search.

Follow the examples below to get the most relevant results.

One word
Depending on the word, the results will show you jobs that have that word in the ad description or, if the word is the same as one of SEEK's job categories, the results will list jobs classified in that category.

More than one word
If you search for two words, for example sales management, your results will list all the positions that include the words sales AND management. These words would not necessarily appear together. You can use or to list jobs including either word.

Phrase searches
Use quotes to search for an exact phrase. For example "sales management" returns results with this exact phrase, where the words appear together. However SEEK's technology is smart enough to recognise some common phrases and common variations, for example part time, part-time, parttime, and deliver all jobs that are true part-time roles, even if you don't put quotes around them or use different spelling.

Excluding words
Use not to exclude keywords. A search of management not sales would list positions that include the word 'management', but not those that include the word 'sales'.

Nested search
SEEK also supports nested searches using brackets, for example management not (sales or accounts). In this case the search results will list jobs that include the word 'management' but none that also include the words 'sales' or 'accounts'.

Capitalisation
SEEK searches are not case sensitive. All letters, regardless of how you type them, will be understood as lower case. For example, searches for Sales Management, sales management or SaLEs ManAGemeNT will all return the same results.

Automatic exclusion of common words
SEEK ignores common words and characters such as the, an, also, symbols such % and / and some phrases such as I am looking for. These tend to slow down your search without improving the results.

Punctuation translation
SEEK translates commas, spaces, dashes and asterisks (apart from quotation marks " " and brackets) as and, so make sure you use or if you would like any of your keywords to appear in the search results. For example, instead of typing in Japanese, Chinese use Japanese or Chinese if you want jobs that match either Japanese or Chinese.

Did you mean?
If you misspell a word SEEK may recognise what you were trying to search on, and offer you a spelling suggestion.

Exploring the hidden job market

Many job opportunities are never advertised. It's been estimated that more than half of positions vacant in Australia are filled through an informal network rather than formally advertised. Often called the "hidden job market", these jobs can only be accessed through networking or cold calling. These techniques are among the most powerful and effective way of finding a job, and planning and practice will increase your confidence.

If you're joining the paid workforce for the first time, returning after a break or contemplating a career change and are unsure of what type of work you want to do, you'll find The Job Guide an excellent resource. Published by DEEWR, it gives an outline of duties, education and training for hundreds of jobs. Use this as a starting point to narrow down your career choices.

Research the industry or occupation

Once you know what industry or type of job you want to do, thorough research is called for. Make some notes about what you already know about the industry or type of job you would like. A second list might be made up of what you don't yet know but need to find out. The information you need includes:

• Where is the industry or job type geographically located? Would you have to relocate to work in this area?
• Is this industry growing or shrinking? Is this a high-demand occupation or are unemployment rates high?
• Which companies are the major "players" in the industry?
• Is there a professional association that represents this industry or this group of workers?
• Are there related occupations that face skill shortages?
• Are formal qualifications required to work in this industry or occupation?
• Where will you find these types of jobs? Only in large corporations, or in small businesses as well?
• Are these types of vacancies generally filled by recruitment agencies or directly by the companies?

This may seem a daunting list, but reading the employment sections of the major newspapers over a period of weeks can often provide a good feel for this information. Your local library may keep back copies of newspapers. If there's a professional association for the industry or occupation, call or visit and ask for or buy copies of the trade journal. If you're at university or high school, make use of your career guidance services. You're already using the Internet: make full use of its potential for research. It's worth taking some time to explore different search engines and how to refine your search for information. Yellow Pages directories are a good starting point for identifying names and locations of companies.

Finish this process by compiling a list of the companies you want to work for. It might be the specific department of a single company or your list might include every company in the industry that is located within a 20 km radius of home.

Research the companies

Next, find out everything you can about your target companies: their product lines, competitors, prices, growth prospects, organisational structure, employment policies, key staff and overseas trends and developments which may effect local operations.

You can find this information in places like:

• annual reports;
• customer newsletters;
• trade magazines;
• product brochures and catalogues;
• sales representatives.

Use your contacts to explore opportunities and to gather more information.

The best option is speaking in person to someone who works there or knows someone who does. This is where your personal contact list will be vital.

List personal contacts

Co-workers (past and present), neighbours, previous employers, family members, friends, your professional advisors, lecturers, sporting buddies, suppliers and customers can all be the start of your contacts list. (Some of these relationships may be sensitive, particularly if you are already working and your employer doesn't know you're looking for another position.) Get in touch with your contacts and ask if they can help directly or by referring you to someone they know who can.

Use your contacts to explore opportunities and to gather more information. Asking outright for a job can put a contact in an embarrassing position. It's more appropriate to ask them for their advice: "John, I'm interested in moving into the publishing industry — do you know anyone I should be talking to?". If John can suggest someone, ask if you can use his name when you introduce yourself. Always remember that your contacts are doing you a favour by introducing you to other people and that your conduct will reflect on them.

Be as specific as you can. For example:

• "Do you know anyone who works for Optus?"
• "Do you know anyone who works as a fitter and turner?"
• "I'm looking for a job in advertising. Do you know anyone who works in that field?"
• "I have excellent keyboard skills and I'm familiar with computers. I have three years experience as a receptionist. I want to use these skills in a customer service job. Can you give me any advice, or do you know anyone who might be able to help?"

The telephone approach #1

You:

"Hello John, this is Roger Smart. Liz Jenkins suggested I give you a call. I'm wondering if you can help with some information. I'm about to graduate from the editing course at X university/I'm looking to move from a career in marketing into the publishing business and Liz thought you might be able to give me some advice, which I'd certainly appreciate. I know you are very busy, but I wondered if you would have 10 or 15 minutes available to meet up?"

Possible outcomes

Before you make the call, rehearse your opening line. Also think about the possible responses. These might include:

John:	"Look, this isn't a good time right now, I'm right in the middle of something."
You:	"I'm sorry. Can I call you back at a more convenient time?"
John:	"What sort of information were you wanting?"
You:	"I want to know as much as possible about the industry and about what experience or knowledge I can gain to help me enter the field."

Use your contacts to explore opportunities and to gather more information.

You:	"I'm really interested in your company. I hear you have a great reputation for publishing technical books, which I'm very interested in. I'd love to find out a bit more about the company from someone who works there."

You should offer to travel to meet your contact, to make the meeting as convenient as possible. Let them choose whether they meet you at their office or after work. Arrive on time and have a list of questions prepared so you can make best use of the time. If you've asked for 15 minutes, don't stay longer without checking this is OK.

There are other options too. Your contact may be happy to call a contact of theirs to introduce you before you call. Or they might be willing to arrange a lunch date or an after-work drink with all three of you.

Attend conferences, seminars and trade shows

Trade shows are a showcase for companies in your industry of interest. They'll give you a good feel for corporate size, culture, reputation and you can have a chat with representatives of each company.

Seminars and conferences provide valuable opportunities for informally meeting people who are already working in the industry. These are most likely in professional occupations and they are often expensive. They are worthwhile as long as you're willing and able to "work the room."

You're already using the Internet: make full use of its potential for research.

The meeting approach

You:

"Hello Fiona. I'm Roger Smart. I was really interested in your presentation this morning. I'm about to graduate from the editing course at X university/I'm looking to move from a career in marketing into the publishing business. I understand that Context Publishing is a big client of yours. I'm really interested in working for Context, and I'd love to know more about them from an insider's point of view. It might not be the best time now, but is there a chance we could arrange to talk further?"

Ask for the job

Cold calling still means ringing strangers and asking for a job. You'll be better equipped to do this once you're armed with a good knowledge of the industry or company.

• Know the name and title of the person who has the power to hire you.
• Rehearse your opening line, including demonstrating your knowledge of and specific interest in that company.
• Mention how you can benefit the company.

Depending on the type of work, your goal in making a call may be to organise a visit or to send your CV, which you then follow up. Your research should have revealed what is the more effective strategy for the industry and job you are chasing.

The examples below are only a starting point. Anticipate more questions and prepare accordingly. Think about how you can create opportunities to explain what you can offer. Role plays can be a very effective way of preparing for cold calls. Practice with a friend — in person or over the phone.

Getting past the switchboard

Some receptionists can be very intimidating. It is increasingly common practice in Australia for receptionists and PAs to "announce" incoming calls. Accordingly they will ask everyone who calls for their name and where they're calling from. Be pro-active. Announce who you are, rather than waiting to be asked. The more senior the person you're calling, the harder they will be to reach. Being at the least polite and at best charming to receptionists and PAs will only help your cause.

The telephone approach #2

Receptionist:	"Good morning, Context Publishing."
You:	"Good morning, this is Angela Haines. May I speak to Fiona Gianopolous please?"
Receptionist:	"And you're calling from?"
You:	"I'm calling on my own account."
Receptionist:	"I'm afraid Fiona is in a meeting at present. Can she call you back?"
You:	"When would be a good time for me to reach her?"
Receptionist:	"You could try later this afternoon."
You:	"Thank you. I'll call back between 3.30 and 4 pm."

The telephone approach #3

Fiona:	"Hello, this is Fiona Gianopolous."
You:	Hello Fiona. My name is Michelle Haines. I'm currently studying the writing and editing course at X University and I'm looking for work in the industry that uses these skills. I understand that Context is expanding its Trades Division at present. I wanted to introduce myself and ask if I could send you my CV.
Fiona:	Um, sure. We have no vacancies at the moment, but there may be openings coming up in another month or so.
You:	Great. I'll get some information to you right away. Perhaps I could call you in a couple of weeks?

OR

Fiona:	Look, we just hired someone in a junior role a couple of months ago, so we're not likely to have any vacancies anytime soon.
You:	Could I send a copy of my CV for your file anyway? Perhaps I could call you in the future to see if anything's changed?

The telephone approach #4

(Mobile number)

Nikolai:	Hello, Ace Plumbing.
You:	Hi, is that Nikolai? My name is Chris Richardson. Have you got half a minute now? I'm about to finish Year 12, and I'm really keen to find work in the plumbing industry. My uncle in Queensland is a plumber and I've done some labouring work for him during the holidays. I wondered if you were taking on apprentices or hiring labourers?
Nikolai:	It all sort of depends at the moment on a contract I'm waiting to hear about.
You:	Even if you're not hiring, maybe you could suggest other people I could talk to. Is there any chance I could drop by to see you? I could come by during a lunch break or just after you knock off work. I'm really keen to get into the industry and it would be great to talk to someone who's worked on the kind of projects you have.
Nikolai:	Yeah, alright. Can't promise you anything, but you can come around on Friday if you like. About 10 am.

For entry-level positions, cold calling can be a numbers game. The more companies you call, the greater the odds of finding an opening. At a more senior level, or for professional roles, you may put more emphasis on "qualifying" your leads and making a handful of well-placed phone calls.

Keep a record

Keep a record of all the contacts you make. This record could be as elaborate as creating a database or a Word macro on your home computer or laptop or as simple as an exercise book, ruled into columns. How you do it isn't nearly as important as keeping your records accurate. You'll want to record:

• Company name
• Date
• Contact name
• Title
• Address
• Phone
• Fax
• Position sought
• Discussed
• Outcome
• Referred to
• When to contact again

Role plays can be a very effective way of preparing for cold calls.

Tips

If you've arranged to send a resume to a potential employer, send it promptly and always include a cover letter.

Always call back exactly when you say you will.

Always carry business cards and/or your CV on you or in the car. You never know when an opportunity may present itself.

Send thank you notes to anyone who helped you. Firstly, because it's appropriate to recognise people's efforts to assist you. Secondly, it may create a good impression with people you probably want to stay in touch with. Keep thank you notes very simple. Email is excellent, as it's low-key but still makes the point.

http://www.seek.com.au/jobs-resources/get-your-dream-job/hidden-jobs

Australians spend $6.8 billion on digital devices

Australians bought 15 million gadgets in 2010, according to the Canon Digital Lifestyle Index. Picture: Tom Lee.

• Aussies bought 15 million gadgets in 2010
• Cameras, iPods, big-screen TVs top the list
• Technology affordability led the spree

AUSTRALIA'S love affair with technology continues unabated as consumers splashed out a whopping $6.8 billion on digital devices in 2010.

The near-record spending bought more than 15 million gadgets, according to the Canon Digital Lifestyle Index released today, ignoring a series of interest rate rises to fall just short of 2009's spending total.

Digital cameras, iPods, big-screen televisions and games consoles led the spree, while document and photo printers proved the least popular.

But the news was not all good for manufacturers. Prices for technological items fell rapidly in the last half of 2010, leading to "unprecedented levels of technology affordability,'' the report said, and an average price drop of 13 per cent.

Big-screen TVs, computers and TV recorders experienced some of the biggest dollar reductions, while the cost of games consoles also fell significantly (21 per cent) during the last six months of the year.

Canon Australia consumer imaging director Jason McLean said price falls were due to fierce competition.
Price falls were in turn encouraging more consumers to invest in technology, slashing the time between gadget upgrades.

"If you look at digital cameras, 26 per cent of owners are upgrading within two years and also 44 per cent of PC users,'' Mr McLean said.

"There's also the trend of multiple product ownership and how people are complementing their digital portfolio with more devices.''

The report, prepared by research firm GfK Retail and Technology Australia, also found digital technology had become "so entrenched'' in the Australian lifestyle it had become part of our culture.

Digital cameras and PCs were estimated to be part of more than 80 per cent of Australian homes.

Computers are used more than watching DVDs or TV, and digital cameras have led to a rise in the number of photos taken in each household, up to more than 100 every month.

BIGGEST SELLERS

1 Digital still cameras 1.6 million
2 Digital media players 1.4 million
3 LCD TVs 1.2 million
4 Games consoles 1 million
5 Personal computers 883,000
BIGGEST DISCOUNTS
1 Plasma TVs $467
2 LCD TVs $365
3 Personal computers $186
4 Personal video recorders $159
5 Digital camcorders $94
Source: Canon Digital Lifestyle Index, 2H 2010

Read more: http://www.news.com.au/money/australians-spend-68-billion-on-digital-devices/story-e6frfmci-1226061667691#ixzz1NDulqZMA

Australians credit card debt climbs to $49.3 billion

Number of credit and charge card accounts is about to top 15 million for the first time, resulting in an average debt of $3321 a card / File

• Aussies owe $49.3bn on credit cards - RBA
• Average credit card holder has a $3321 debt
• Higher costs of living 'hitting households'

AUSTRALIANS owe almost $50 billion on credit cards as spiralling living costs force them to put everyday expenses and even mortgage repayments on plastic.

Reserve Bank of Australia statistics reveal the national credit card debt has climbed 42 per cent in the past five years to $49.3 billion, with $36 billion accruing interest.

The $2.87 billion increase has stunned experts with figures showing the average credit card debt of $3321.

While that may appear to be manageable, on a national scale our credit card addiction is one of the world's most severe. Nudging the Budget deficit in size, it would be enough to pay off the average $300,000 mortgage of almost 170,000 homeowners.

Debt Relief Australia spokesperson Deborah Southon says the typical family credit card debt is likely to be much higher than the $3321 average with many households juggling repayments on two or more cards.

Read more: http://www.news.com.au/money/money-matters/credit-card-balances-climb-to-50-billion-rba/story-e6frfmd9-1226056643781#ixzz1McWkNvYt

More than 70,000 Australians visit the debt resolution site each year seeking help.

It is not uncommon for single households to incur tens of thousands of dollars in credit card repayments with families increasingly relying on plastic to meet higher costs of living.

"It's not just the number of people who come to us for credit card debt resolution that’s alarming but the extreme level of debt they are in,” Ms Southan says.

"We had a client recently who owed $450,000 and was on a salary of $40,000. She had ten credit cards and was using one to pay off the other. By the time she came to us she was almost suicidal."

Ms Southon says it's not surprising that more Australians are sliding into the debt every month, with credit card companies constantly devising new ways to lure cardholder to make more purchases and conduct more transaction, such as rewards programs and special offers.

Blinded by the incentives, consumers lose sight that credit cards are one of the most expensive ways to borrow money, she says.

"Lives can be destroyed by credit card debt, more couples break up over financial stress than infidelity," Ms Southon says.

"People have these huge credit card debts and no assets through that spending because they are buying goods which depreciate in value.”

The risk increases tenfold when households and businesses are under both credit card and mortgage stress, she says.

"You have people who are paying $500 a week on a mortgage and then servicing a $40,000 credit card debt on top of it. You need a substantial income to be able to afford that. Most of middle Australia can’t cope with that sort of debt."

This massive mountain of debt will continue to escalate indefinitely with many lenders charging interest rates on credit card accounts four times higher than the official RBA cash rate of 4.75 per cent.

More than two-thirds of consumers’ outstanding debt is accruing interest at the average rate of nearly 20 per cent – a 20-year high.

Ms Southon blames lenient lending criteria prior to the GFC – tighter rules came into play under credit card reforms in January – and a spending binge fuelled by the Rudd Government's first home owner grant and the stimulus package.

Before the reforms, credit cards were being approved to households and businesses with low documentation or no documentation at all.

Today there are more than 14 million credit cards in circulation in Australia, with almost every adult owning at least one.

And experts warn the financial headache will get worse before it gets better.

The RBA is expected to increase the official cash rate from next month and credit card holders squeezed by mortgages are extremely vulnerable to rate rises – families already buckling under the weight of household costs won’t be able to tolerate increases to their repayments.

More Australians will default on credit cards, homes, businesses and cars will be repossessed, relationships tested and lives left in tatters.

Ratecity CEO Damian Smith blames society’s spend-now-pay-later culture.

“Credit cards are the easiest form of debt Australians have access to. It’s the simplest loan for most people to get approval for and the most flexible to use," Mr Smith says.

“Most credit cards have a minimum repayment of 2 percent each month and unlike most other types of loans, there is no time period to pay it off. This becomes dangerous because people can get caught with a never-ending debt.”

Mr Smith says the rising Australian dollar has added to credit card woes by boosting online shopping, and with no short-term end in site for the currency’s ascent will continue to.

While credit card debt is crippling households, it also impacts on the health of the nation.

Maxing the plastic stimulates the economy in the short-term, says J.P. Morgan economist Helen Kevans.

"But, should consumers get too deep in debt, spending is reined in or ceased altogether, dampening private consumption, which in Australia’s case accounts for a substantial 54 per cent of GDP," Ms Kevans says.

“When debt becomes unmanageable, it can only affect the economy adversely. Consumption slows, the broader economy slows even more, leading to job losses and even less spending - a vicious circle.”

Ironically, the major benefactors of the credit card crisis – lenders – will end up wearing consumers’ pain. They will be forced to cut back on borrowing as a result of defaults, which today’s RBA figures indicate are only on the way up.

Read more: http://www.news.com.au/money/money-matters/credit-card-balances-climb-to-50-billion-rba/story-e6frfmd9-1226056643781#ixzz1McWfTBDt