¹ This figure was calculated using the total household liabilities from ABS and projected number of households in 2025.
Australian household debt has steadily risen over the past three decades as more of us aim to own homes and continue to rely on products such as car loans and credit cards. As a result, Australia is reported to have some of the highest personal debt levels in the world.
The average Australian household carried $313,633 in total debt in June 2025, with the majority coming from home loans. Mortgages remain the dominant source of debt, while personal loans, car loans, and credit cards continue to add pressure on household budgets.
Australian household debt climbed to a record $3.33 trillion in June 2025, according to data from the Australian Bureau of Statistics (ABS). This marks a 6% increase from $3.14 trillion a year earlier.
Q2 2025, according to the latest NAB Australian Wellbeing Survey, the average home loan debt was $349,410, while investment loans averaged $337,577. Personal loans stood at $14,704, and loans from family and friends averaged $5,859. Credit card debt averaged $3,193, payday loans were at $1,222, and buy now, pay later (BNPL) debts averaged $633.
Mortgage debt remains the largest source of household debt in Australia, but other types of borrowing are adding to the pressure on family budgets.
Australians took out $9 billion in personal loans in June 2025, according to the latest figures from the Australian Bureau of Statistics (ABS). Of that, $4.9 billion went towards car loans, while $4.1 billion covered other types of borrowing. The total value of new personal loans was up 5.3% on the previous quarter and 16.8% higher than a year earlier.
According to NAB's Australian Wellbeing Survey for the June 2025 quarter, more than a third of Australians (35%) have credit card debt, while 30% have a home loan. Buy now, pay later (BNPL) accounts were the next most common form of debt, affecting 20% of respondents.
Australians aged 50 to 64 were the most likely to have credit card debt, with 46% in this group reporting an outstanding balance. Among those aged 30 to 49, home loans were the most common form of debt (46%), while younger adults aged 18 to 29 were more likely to owe money to family or friends (26%).
Buy now, pay later (BNPL) debt was common among both 30 to 49 year olds (26%) and 18 to 29 year olds (23%).
| Response | |
|---|---|
| Put into a savings account | 41.63% |
| Pay off home loan | 25.3% |
| Put into a term deposit account | 24.7% |
| Pay off debt (card, buy now pay later, personal loan) | 17.73% |
| Spend it on a holiday | 16.93% |
| Put into ETF/invest in the share market | 16.63% |
| Home repairs/renovations | 12.85% |
| Invest in property | 10.16% |
| Other | 4.38% |
Australia has the second-highest level of household debt in the world, with total borrowings worth 112% of GDP, according to data from the International Monetary Fund (IMF). Only Switzerland ranks higher, at 125%.
Australians are taking different steps to manage financial pressure as living costs stay high. Many Australians are continuing to tighten their budgets in response to rising living costs, cutting back on dining out, small indulgences, entertainment, travel and holiday plans.
More than a third of Australians are dipping into their savings faster to keep up with everyday costs, according to NAB's Australian Wellbeing Survey for the June quarter of 2025. The survey found 36% had drawn down their savings more quickly, while 26% said rising prices hadn't changed their lifestyle. About 20% sold personal items, 14% borrowed or received money from family or friends, and 11% took on extra work or a second job.
Australians are feeling cautiously optimistic about their household debt levels heading into late 2025, according to new data from Finder's Consumer Sentiment Tracker. The survey found that 45% of Australians feel positive about the amount of debt their household owes, with 16% feeling extremely positive and 29% somewhat positive.
However, not everyone shares the same outlook. Nearly a third of respondents reported negative feelings about their debt, with 23% feeling somewhat negative and 11% extremely negative. The mixed sentiment suggests that while many households are gaining confidence in managing their finances, a significant portion remain concerned about rising costs and higher interest rates.
While Australia's $2.66 trillion of personal debt is among the highest of OECD countries, it is important to consider the different types of debt that contribute to this figure.
On a very basic level, these debts can be viewed as either "good" or "bad".
It's also important to keep in mind that any debt can become a bad debt if people are unable to repay it.
"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. 41% of Australians in 2024 told Finder said they were struggling to make home loan repayments. "
We're tracking every cut to a credit card points program ahead of the credit card surcharge ban.
A buy now, pay later account offering spending limits up to $20,000, low interest for higher balances, and no overseas transaction fees.
Find credit cards that make international spending cheaper with 0% international transaction fees.
Applying for a new credit card or upgrading your current one? We've reviewed over 260 cards in Australia!
Insights and analysis on American Express credit cards, costs, acceptance and more.
Discover exactly how the average Australian uses their credit card.
Shop online with international retailers and pay no foreign currency conversion fees.
You deserve the best credit card. Let us help you find it.
Check out bonus point offers and travel perks such as lounge access and complimentary insurance with these Velocity Frequent Flyer credit cards.
Read through this guideline to help protect yourself from any unauthorised transactions from your credit card.