Debt

Paying Off Debt in Australia: Credit Cards, Personal Loans, Buy Now Pay Later

How to tackle debt in Australia in 2026. Credit card interest rates, personal loan rates, BNPL risks, and the debt priority order for Australians.

10 April 20264 min read
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Australian household debt is among the highest in the world relative to income — driven largely by mortgages, but also by credit card debt, personal loans, and the explosive growth of Buy Now Pay Later services like Afterpay and Zip.

Australian debt types and their costs

Debt typeTypical ratePriority
Credit card (standard)18-22% p.a.Highest
Store card / retail finance20-28% p.a.Highest
BNPL (Afterpay, Zip) — late feesVaries + late feesHigh when fees apply
Personal loan8-18% p.a.Medium-high
Car loan6-12% p.a.Medium
HECS-HELPCPI only (no interest)Low
Mortgage5.5-7% p.a.Lowest

💳 Credit Card Payoff Calculator (AUD)

Time to pay off

Balance transfer cards: the Australian option

Several Australian banks and credit unions offer 0% balance transfer cards (typically 12-28 months). Key considerations: a transfer fee of 1-3% applies; you must pay off the full balance before the promotional period ends; and you should not spend on the transfer card. CBA, ANZ, and Westpac regularly run competitive offers — compare at Canstar or Finder.

🆘 Financial counselling: free in Australia The National Debt Helpline (1800 007 007) provides free financial counselling from qualified professionals. If you're struggling with debt, this is the first call to make — before paying for any private debt management service.

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