Repo men thrive as debt woes tipped to soar

DEBT collectors are telling broke families to eat less, quit smoking and live in cheaper homes as they recoup billions of dollars in unpaid bills.

Others are chasing money from the dead, bungling identities and abusing family and workmates in the pursuit of a growing pile of owed cash.

Counsellors fear more households will fall prey to dodgy tactics as the financial crisis deepens and more businesses sell debts to collection agencies.

Collection agencies manage about $6 billion in debt owed by millions of customers. The business is tipped to expand this year with more defaults on mortgages, credit cards, loans and other bills.

Mr Samuel, speaking at the launch of the Australian Collectors and Debt Buyers Association in Melbourne, said complaints were few, but some unscrupulous methods remained.

Investigators bombard debtors with 60 million phone calls, text messages and face-to-face meetings each year.