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

According to a 2024 survey in Australia, nearly ** 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 ** percent of respondents said they had no debt.

Key information about Australia Household Debt: % of GDP

• Australia household debt accounted for 116.6 % of the country's Nominal GDP in Mar 2023, compared with the ratio of 118.0 % in the previous quarter.
• Australia household debt to GDP ratio is updated quarterly, available from Jun 1988 to Mar 2023.
• The data reached an all-time high of 129.4 % in Sep 2016 and a record low of 44.2 % in Sep 1988.

CEIC calculates quarterly Household Debt as % of Nominal GDP from quarterly Household Debt and quarterly Nominal GDP. The Australian Bureau of Statistics provides Household Debt in local currency and Nominal GDP in local currency.


Related information about Australia Household Debt: % of GDP

• In the latest reports, Australia Household Debt reached 1,957.6 USD bn in Mar 2023.
• Money Supply M2 in Australia increased 4.1 % YoY in Jun 2023.
• Australia Foreign Exchange Reserves was measured at 37.1 USD bn in Jun 2023.
• The Foreign Exchange Reserves equaled 1.5 Months of Import in May 2023.
• Australia Domestic Credit reached 3,627.0 USD bn in May 2023, representing an increased of 1.9 % YoY.
• The country's Non Performing Loans Ratio stood at 0.8 % in Mar 2023, compared with the ratio of 0.8 % in the previous quarter.

The Debt Collection industry's performance tends to improve when economic conditions are weak, as these factors can elevate business bankruptcies and cause more households to default on loans. On the other hand, a strong economy and tight lending practices can dampen debt collection agencies' performance. Households and businesses pay down debts when the economy is performing well, while tighter lending practices leads to better loans that are less likely to default.While economic conditions weakened in the COVID-19 outbreak's aftermath, the government provided businesses with assistance via stimulus measures to ensure that they could remain in operation. This factor dampened business bankruptcies during the pandemic, dulling demand for debt collection services. Long-term drops in business bankruptcies, the household debt to assets ratio and the ratio of credit card debt to discretionary income have cut into industry profit margins. Despite these trends, debt collection agencies are starting to recover. Inflationary pressures have been ramping up, and the RBA has been raising the cash rate consistently to combat this climb. Resulting rises in interest rates and the cost of borrowing have made it more likely for households and businesses to accumulate bad debt. Revenue is expected to fall at an annualised 7.1% to an estimated $1.2 billion over the five years through 2023-24. However, this trend includes an expected rise of 9.4% in 2023-24, as recovering demand for debt collection services has sparked improved performance.Debt collection agencies' performance is set to keep recovering over the next few years. Climbing interest rates will lift the ratio of interest payments to disposable income, making it more likely that downstream markets will seek out debt collection services. Agencies are also likely to improve their profit margins; many debt collectors are implementing process automation via web portals, which can improve productivity and automate communications functions like sending emails and messages. Growth opportunities are also on track to arise for debt collectors, as more companies will be outsourcing receivables management to specialists in the industry – particularly companies in the finance, insurance, banking and telecommunications sectors. Overall, revenue is forecast to climb at an annualised 1.1% to an estimated $1.3 billion over the five years through 2028-29, reflecting the industry's improved operating conditions.

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 *** Australian dollars. The BNPL debts in Australia peaked in January 2022, when users had an average BNPL debt amount of **** thousand Australian dollars.

According to a survey conducted in November 2023 among Australian consumers, ** 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 survey on buy now, pay later (BNPL) in Australia, ** 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 *** 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.

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Home Equity Lending Market Size 2025-2029

The home equity lending market size is forecast to increase by USD 48.16 billion, at a CAGR of 4.7% between 2024 and 2029.

The market is experiencing significant growth, fueled primarily by the massive increase in home prices and the resulting rise in residential properties with substantial equity. This trend presents a lucrative opportunity for lenders, as homeowners with substantial equity can borrow against their homes to fund various expenses, from home improvements to debt consolidation. However, this market also faces challenges. Lengthy procedures and complex regulatory requirements can hinder the growth of home equity lending, making it essential for lenders to streamline their processes and ensure compliance with evolving regulations.
Additionally, economic uncertainty and potential interest rate fluctuations may impact borrower demand, requiring lenders to adapt their strategies to remain competitive. To capitalize on market opportunities and navigate challenges effectively, lenders must focus on enhancing the borrower experience, leveraging technology to streamline processes, and maintaining a strong regulatory compliance framework.

What will be the Size of the Home Equity Lending Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The market continues to evolve, shaped by various economic and market dynamics. Fair lending practices remain a crucial aspect, with entities ensuring borrowers' creditworthiness through rigorous risk assessments. Economic conditions, employment history, and credit score are integral components of this evaluation. Mortgage insurance (PMIs) and mortgage-backed securities (MBS) are employed to mitigate risk in the event of default. Verification of income, property value, and consumer protection are also essential elements in the home equity lending process. Housing prices, Homeowners Insurance, and property value are assessed to determine the loan-to-value ratio (LTV) and interest rate risk. Prepayment penalties, closing costs, and loan term are factors that influence borrowers' financial planning and decision-making.

The regulatory environment plays a significant role in shaping market activities. Consumer confidence, financial literacy, and foreclosure prevention initiatives are key areas of focus. real estate market volatility and mortgage rates impact the demand for home equity loans, with cash-out refinancing and debt consolidation being popular applications. Amortization schedules, mortgage broker involvement, and escrow accounts are essential components of the loan origination process. Market volatility and housing market trends continue to unfold, requiring ongoing risk assessment and adaptation.

How is this Home Equity Lending Industry segmented?

The home equity lending industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Source

  Mortgage and credit union
  Commercial banks
  Others


Distribution Channel

  Offline
  Online


Purpose

  Home Improvement
  Debt Consolidation
  Investment


Loan Type

  Fixed-Rate
  Variable-Rate


Geography

  North America

    US
    Mexico


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    UAE


  APAC

    Australia
    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Source Insights

The mortgage and credit union segment is estimated to witness significant growth during the forecast period.

In the realm of home equity lending, mortgage and credit unions emerge as trusted partners for consumers. These financial institutions offer various services beyond home loans, including deposit management, checking and savings accounts, and credit and debit cards. By choosing a mortgage or credit union for home equity lending, consumers gain access to human advisors who can guide them through the intricacies of finance. Mortgage and credit unions provide competitive rates on home equity loans, making them an attractive option. Consumer protection is a priority, with fair lending practices and rigorous risk assessment ensuring creditworthiness. Economic conditions, employment history, and credit score are all taken into account during the loan origination process.

Home equity loans can be used for various purposes, such as home improvement projects, debt consolidation, or cash-out refinancing. Consumer confidence plays a role in loan origination, with interest rates influenced by market volatility and economic conditions. Fixed-rate and adjustable-rate loans are available, each with its a

Key information about Australia Non Performing Loans Ratio

• Australia Non Performing Loans Ratio stood at 1.1 % in Dec 2024, compared with the ratio of 1.1 % in the previous quarter
• Australia Non Performing Loans Ratio data is updated quarterly, available from Jun 2004 to Dec 2024
• The data reached an all-time high of 2.2 % in Jun 2010 and a record low of 0.5 % in Dec 2007

CEIC calculates quarterly Non Performing Loans Ratio from quarterly Non Performing Loans and quarterly Total Loans. Australian Prudential Regulation Authority provides Non Performing Loans and Total Loans. Non Performing Loans Ratio prior to Q1 2022 is calculated from the sum of the Impaired Assets and those Past Due Items that are overdue for 90 days or more.


Further information about Australia Non Performing Loans Ratio

• In the latest reports, Money Supply M2 in Australia increased 5.3 % YoY in Jan 2025
• Australia Foreign Exchange Reserves was measured at 41.9 USD bn in Feb 2025
• The Foreign Exchange Reserves equaled 1.5 Months of Import in May 2023
• The country's Domestic Credit reached 3,589.5 USD bn in Jan 2025, representing an increased of 2.7 % YoY
• Household Debt of Australia reached 2,206.9 USD bn in Sep 2024, accounting for 116.6 % of the country's Nominal GDP