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 had a debt of $261,492 as of December 2022, according to the most recent data form the Australian Bureau of Statistics (ABS). This is equivalent to a national total of $2.66 trillion in household debt, based on the number of households the ABS included in the data.
Mortgage debt typically makes up the biggest portion of average household debt in Australia. But personal loans, car loans, credit cards and student loans (e.g. HECS-HELP balances) also contribute to personal debt levels in Australia.
As the amount of debt each Australian has varies depending on the loans or products taken out in their name, these details can help put it in perspective:
Source: ABS Housing Census Data, Finder Consumer Sentiment Tracker
Finder research has also found the average Australian has a total of $21,413 in personal debt (excluding mortgages and student debt) in 2025.
Australia has the third-highest level of household debt for countries in the Organisation for Economic Co-operation and Development (OECD), worth 211% of net disposable income per household.
Only Switzerland and the Netherlands have higher levels of household debt than Australia.
| 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% |
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. "
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