Melbourne-based Beverley Ferguson's financial problems started when her husband died ten years ago.
The pensioner received a credit card in the mail and says she was quickly drowning in debt.
"Very worrying, very worrying. How can I pay a $10 k debt when I've got no money, and it was a worry, a constant worry every day, I dreaded the phone ringing. Because I'd know they were ringing me again and I didn't know what else I can do."
The 70-year-old has since received financial advice to get back on track.
But a new report by the financial regulator, the Australian Securities and Investments Commission or ASIC, has found a staggering one in six Australians is still struggling with credit card debt.
ASIC Executive Michael Saadat has been studying the figures.
"I think one of the key findings of our report is that one in six Australians is struggling with their credit card debts. Which means that they're either behind in repayments, they're making consistently low minimum repayments or they're completely using their full credit limit over an extended period of time. And for those consumers who are struggling with their credit card debts they are paying very high rates of interest over a long period ."
Outstanding balances on credit cards now total $45 billion dollars.
And of the 21.4 million credit card accounts ASIC reviewed consumers could have saved a whopping $621 million dollars in interest in a single year if they had switched to a more appropriate credit card with a lower rate.
Consumer advocate Christopher Zinn is advising customers to take control of their own finances.
"Take control yourself. Now there are many low rate cards, the big four banks offer them, a range of other providers offer them too. You can get down to 8 per cent, in terms of the purchase, that's pretty good as opposed to 21%. So move to lower rate cards, get in control of your cards don't let them control you."
The report warns moving debt from one card to another can also lead to trouble for some customers.
ASIC is proposing tougher regulations to ensure consumers are only given credit limits that can be repaid within three years.
The new laws would come into effect in January.
