A new report reveals that people are facing financial ruin for debts as small as $10,000.
Last updated: 22 Dec 2025
Barely being able to afford the cost of living is a terrible daily reality for millions of Australians. But when a financially precarious existence slips into mounting debt, things can go from bad to worse in a hurry.
The average Australian household was carrying somewhere around $300,000 in debt as of June 2025, most of it credit card and mortgage debt. But other forms of debt were also in the mix, including outstanding balances on buy now, pay later (BNPL) products, personal loans, and payday loans. A lot of this eventually gets paid off, but when it doesn’t, people…