Cost of living crisis sparks explosion in personal debt levels of Australians ... trends now
Australians now owe more than $70bn combined as the cost of living crisis propels an explosion in personal debts, comprehensive new polling shows.
Millions of people have turned to loans and credit cards to make ends meet over the past 12 months while inflation drove up household bills and the price of groceries and other consumer goods.
With inflation running at 7 per cent, research by finance comparison website Finder has found the average Australian now has $20,238 in debts spread across consumer loans and credit cards.
That's an increase of 11 per cent from a year earlier, when the average person had $18,301 worth of credit card and consumer loan debt, according to the study.
Finder's data showed some 10.9 million Australians - about 54 per cent of the adult population - were using a credit card last month.
And about 2.8 million Australians, or one-in-seven people, have a personal loan. The same proportion of the population has a car loan.
On average, each Australian now holds $1,948 in credit card debt, $6,920 in personal loans and a car loan with a balance of $11,370, according to Finder's consumer sentiment tracker.
The average Australian now has $20,238 in debts spread across consumer loans and credit cards Picture: NCA NewsWire / Nicholas Eagar
Conducted by pollster Qualtrics, the survey aims to comprehensively chart consumer sentiment in Australia on an ongoing basis.
Finder says the survey covers a nationally-representative, growing sample of more than 51,000 people, with 1,000 people being added to the poll each month.
People surveyed are asked how they are faring in a range of areas including wealth, happiness, financial sentiment and environmental awareness.
The survey found credit card debts have risen to $18.6bn altogether while personal and car loans are now worth an estimated $19.6bn and $32.3bn respectively.
Personal debts across have soared to $70.5bn in total.
While government and Reserve Bank officials believe inflation has started to moderate after peaking at the end of last year, consumer prices remain high and aren't expected to return to more normal levels until late 2024.
Separate research from Finder has found 6.1 million or 30 per cent of Australians are extremely stressed about their current financial situation, an increase of 22 per cent compared to a year ago.
Personal debts across have soared to $70.5bn in total. The survey found credit card debts have risen to $18.6bn altogether while personal and car loans are now worth an estimated $19.6bn and $32.3bn respectively
Finder's personal
