The Black Friday and Christmas shopping wave is upon us – but Australians continue to grow their money debt in credit cards, according to Compare the Market’s 2025 Household Budget Barometer report.
Despite the rise in Buy Now, Pay Later schemes, half of Australians surveyed (50%) said they have credit card debt in 2025 – a 9% increase compared to last year. Generation X were most likely to carry credit card debt (31%).
Meanwhile, more than a quarter of Australians (26%) had Buy Now, Pay Later debt – representing an 8% increase versus 2024. Millennials were the most likely to use Buy Now, Pay Later schemes (40%)
Car loans (13%), personal loans (10%) and education debt (11%) also saw minor increases this year.
Source: 2025 Household Budget Barometer Report | Compare the Market
Compare the Market’s Economic Director David Koch said these findings indicated that Australians were combatting high cost-of-living by increasing their personal debt.
“When the bills and everyday life expenses continue to pile up, Australians are unfortunately resorting to credit cards, Buy Now, Pay Later, and personal loans in order to fulfill their lifestyles,” Mr Koch said.
“Whether it’s shopping for Christmas presents or trying to pay high medical bills, money is tight for many. People can’t afford to wait and save up; they need the money now.
“Only 7% of Australians surveyed think the cost-of-living has improved in the past year, as part of Compare the Market’s Household Budget Barometer report.
“But building up money debt is an unhealthy habit. It’s important to be honest with your finances and not overreach more than necessary. This is why financial education is so important and the federal government should make it compulsory in the school curriculum.”
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When referencing the report, please attribute: https://www.comparethemarket.com.au/home-loans/features/household-budget-barometer-report-2025/
Compare the Market commissioned PureProfile to survey a nationally representative sample of 3,006 Australians in August 2025, as part of the 2025 Household Budget Barometer report.
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