Thanks everyone for your replies. It feels so good to know that we're not the only ones in trouble. Hugs to everyone else going through this. Its not nice, but I kind of think it puts things in perspective - i.e. that you really don't need money to be happy.

DH went to the financial counsellor today (it was a charity like the Salvo's or someone), and found out about the government electiricity payment that someone mentioned (at least I think that's what he said...) I am going to see them next week to organise this.

Thanks for the advice re not paying the debt collecotrs. I am so ****ed off with them and their bullying attitute. I will pay them when we're ready, and I spoke to a friend today who agreed that no one is going to take us to court for $200.

We can't apply for other credit cards, as ours are maxed out (already tried), and unfortunately I don't think that we have a good relationship with our banks anymore as we have been having problems with repayments for the past 3 months. I will see if we qualify for financial hardship.

I also made a call to a debt solution company last night and was told that they would call me back. So things are looking a little less bleak. Thank heaps everyone for your support.

Oh and the really good thing that's come out of this - I have realised that by buying fresh fruit and veg, etc, we have really cheap grocery bills and actually eat really healthily.