In 2022, the average amount owing on credit cards in Australia was approximately 2,857 Australian dollars per card. This is a slight increase from the previous year, where the average amount owing on credit cards was 2,801 Australian dollars.

According to a survey conducted in November 2023 among Australian consumers, 48 percent of respondents accumulated debt in the form of credit cards. According to the source, 2023 Buy Now, Pay Later (BNPL) services became the second most common form of personal debt in Australia.  Personal debt on the rise According to a survey, the average value of personal debt (excluding home loans) across all generations in Australia had increased between 2020 and 2021. While this is unlikely only attributed to the accessibility of BNPL services, some financial advisors have voiced their concerns about the overuse of such services. In a recent survey among financial advisors, most respondents stated that among their clients with BNPL debt, the majority were struggling to pay living expenses. Buy Now, Pay Later services Buy Now, Pay Later services are widely available across Australia. As the name implies, consumers can purchase a product immediately using a credit service, while paying off the purchase amount in pre-agreed installments. Little to no fees are charged unless the installment payments are not made as agreed. A quarter of Australians who shop online have used this form of payment on clothing or accessory purchases. Afterpay, Zip, and Latitude Pay were all commonly known BNPL services in the country. It is not uncommon for consumers to have multiple BNPL accounts, largely because a particular store did not offer an existing service provider.

According to a 2024 survey in Australia, nearly 47 percent of Gen Z respondents had no debt at all. The generation with the second-highest share of respondents with no debt was the Baby Boomer generation, in which nearly 45 percent of respondents said they had no debt.

According to a 2024 survey on buy now pay later (BNPL) services, the average amount of debt BNPL users carried in Australia as of July 2024 stood at approximately 867 Australian dollars. The BNPL debts in Australia peaked in January 2022, when users had an average BNPL debt amount of 1.78 thousand Australian dollars.

According to a survey on buy now, pay later (BNPL) in Australia, 43 percent of respondents stated that they used BNPL services in the past six months as of July 2024. The country has seen a rapid uptake of BNPL services over the past few years, with consumers attracted to the zero-interest sometimes offered and convenience. BNPL in Australia The overall penetration rate of BNPL is high in Australia compared to similar economies. Still, there are differences between generational usage of BNPL services in Australia, with Gen Z and Millennial consumers using these payment services more than older generations. The leading BNPL brand in Australia is afterpay, with a high adoption rate for both point-of-sale and online transactions. Consumer credit causing problems? The average BNPL debt in Australia has consistently exceeded 1,000 Australian dollars over the past few years, though as of July 2024, has dropped to under 900 Australian dollars. Due to cost-of-living pressures, many consumers have had to pay for essential items with the payment service, according to financial advisors in Australia. While the benefit of having the item purchased immediately is clear, BNPL users often need to pay late fees if they do not make their scheduled repayments on time.

Key information about Australia Private Debt: % of Nominal GDP

• Australia Private Debt accounted for 126.28 % of its Nominal GDP in Dec 2024, compared with a ratio of 125.31 % in the previous quarter
• Australia Private Debt contribution to Nominal GDP ratio is updated quarterly, available from Mar 1990 to Dec 2024, with an average share of 109.83 %
• The data reached an all-time high of 139.33 % in Dec 2016 and a record low of 56.65 % in Mar 1990

CEIC calculates quarterly Private Debt as % of Nominal GDP from monthly Private Debt and quarterly Nominal GDP. Private Debt is calculated as the sum of Lending to Personal and Non Financial Sector. The Reserve Bank of Australia provides Private Debt in local currency. The Australian Bureau of Statistics provides Nominal GDP in local currency. Private Debt prior to Q2 2003 excludes Financial Businesses.