¹ This figure was calculated using the total household liabilities from ABS and projected number of households in the June quarter of 2026.
Australian household debt has risen steadily over the past three decades, as home ownership, car loans and credit cards use have remained major sources of borrowing. Australia also has one of the highest levels of household debt in the world.
The average Australian household now carries $320,182 in total debt, up from $313,633 a year earlier. Mortgages account for the bulk of this debt, while other forms of borrowing add to household liabilities. The NAB Australian Wellbeing Survey puts average credit card debt at $3,139, while Reserve Bank of Australia (RBA) data shows a higher average balance of $3,558.
Australians took out $9.7 billion in new personal loans in June 2026, according to the Australian Bureau of Statistics (ABS). Of this, $4.7 billion was for road vehicles and $5.0 billion was for other purposes. The figures exclude a further $1.7 billion in refinancing.
Nearly 6 in 10 Australians (59%) have some form of debt, according to Finder's Consumer Sentiment Tracker.
Credit cards are the most common type, held by 38% of Australians, followed by home loans (34%), BNPL (23%), personal loans (17%) and money owed to family or friends (16%), according to the NAB Australian Wellbeing Survey for Q1 2026.
Men are more likely than women to have credit card debt (40% vs 35%), while women are more likely to use BNPL (25% vs 19%).
Nearly 1 in 4 Australians (23%) missed a household debt-related payment in the past three months, up from 21% in Q4 2025, according to the NAB Australian Wellbeing Survey (Q1 2026).
Lower-income earners were more than twice as likely as higher-income earners to miss a phone or internet bill (17% vs 7%) and more than three times as likely to miss a rent payment (10% vs 3%).
Rising bills are putting further pressure on household budgets. More than 6 in 10 Australians (62%) took at least one step to manage higher household bills in the past year, most commonly cutting back on heating or cooling (33%), according to Finder's Consumer Sentiment Tracker (September 2026).
A further 15% skipped or delayed a bill payment, while 11% went into debt or used BNPL or credit to cover a bill.
Australians with credit card debt expect it will take an average of 5.6 months to pay it off, according to Finder's Consumer Sentiment Tracker (September 2026). Women expect to take 6.5 months to clear their debt, around 35% longer than men, who expect to take 4.8 months.
Credit card debt can be costly to carry. The average standard credit card rate is 20.99%, while the average low rate card charges 13.49%, according to the RBA. Credit card balances accruing interest had an average rate of 18.67% in July 2026, more than double the 8.86% rate on fixed-term personal loans, according to RBA data.
| Type of credit | Outstanding balances | New loans funded in the month |
|---|---|---|
| Credit card balances incurring interest | 18.67% | N/A |
| Fixed-term loans (total) | 8.86% | 9.4% |
| Fixed-term loans: fixed rate | 10.13% | 10.48% |
| Fixed-term loans: variable rate | 7.72% | 8.22% |
| Margin lending | 7.51% | 7.59% |
| Finance leases | 9.37% | 9.55% |
Source: APRA and RBA, July 2026
Around 1 in 4 Australians (26%) are concerned about the amount of debt they have, while a third (33%) have debt but are not worried about it. Looking ahead, 47% feel positive about the amount of debt their household owes, compared with 35% who feel negative, according to Finder's Consumer Sentiment Tracker.
Few Australians are taking steps to simplify their debt. Just 6% have consolidated their debt in the past 12 months, while a further 10% plan to.
"Australians are in a lot of debt. But we're mostly staying on top of it. Unpaid credit card balances are down from their peak many years ago. While mortgage debts are high, default rates remain low. We're on top of our debt, but that doesn't mean it's easy."
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