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 type | Typical rate | Priority |
|---|---|---|
| Credit card (standard) | 18-22% p.a. | Highest |
| Store card / retail finance | 20-28% p.a. | Highest |
| BNPL (Afterpay, Zip) — late fees | Varies + late fees | High when fees apply |
| Personal loan | 8-18% p.a. | Medium-high |
| Car loan | 6-12% p.a. | Medium |
| HECS-HELP | CPI only (no interest) | Low |
| Mortgage | 5.5-7% p.a. | Lowest |
💳 Credit Card Payoff Calculator (AUD)
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.
Track your budget in Australian dollars
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