Australians love the freedom credit brings - but it comes at a cost.
By late 2025, credit card debt has climbed to A$43.34 billion, with A$20.75 billion accruing interest - around A$2,060 per adult1. Add mortgages, car loans, and the surge in 'buy now, pay later' platforms like Afterpay and Zip, and it’s clear: debt isn’t just common, it’s woven into everyday life.
Why we choose credit
Many people adopt a ‘set and forget’ approach - making minimum repayments without considering the long-term cost. This can undermine financial wellbeing by creating stress and limiting future choices.
The cost-saving opportunity - and the catch
A recent review by the Australian Securities and Investment Commission (ASIC) shows Australians could save hundreds of millions by switching to lower-rate cards2. Importantly though, earlier studies show 15% of people who switched cards, without cancelling the old one, went on to increase their debt by more than 50%.
Financial wellbeing isn’t just about finding better rates - it’s about building habits that reduce risk.
Buy Now, Pay Later (BNPL)
Platforms such as Afterpay and Zip continue to grow in usage, with nearly one in four Australians carrying BNPL debt3. While these services feel convenient, they can fragment your financial picture and make budgeting harder by breaking your overall financial situation into multiple, disconnected parts, making it harder to see the full picture of what you owe and manage your money effectively. A key financial wellbeing principle is clarity - knowing what you owe and when.
Debt and the emotional toll
Financial stress impacts mental health and relationships. Nearly half of Australians report anxiety or depression linked to money worries4. Improving financial wellbeing means reducing this stress through planning, support, and informed choices.
The first step to getting back in control
Start with a budget buy using tools like our BankVic budget planner.
Awareness is empowering - track your spending, understand your debt repayments, and identify areas to cut back. This isn’t just about numbers; it’s about regaining confidence and control.
Simplify and consolidate debt
If you have multiple debts, consider consolidating. A single loan with a clear repayment timeline can reduce complexity and stress. Lower interest rates and structured plans support both financial and emotional wellbeing.
We’re here to help
There are a range of options on personal loans, but at BankVic we can guide you step-by-step through the whole process. If you want to tame your debt monster and feel in control of your finances again visit BankVic personal loan, call 13 63 73 to get expert guidance from one of our bankers.
BankVic has financial hardship support, extra care support and other support services which you can explore by visiting BankVic member support. There are also government support services available such as government financial counselling services.