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A bleak new study has revealed that the average Australian is in more than $20,000 worth of personal debt, equating to over $70 billion nationwide.
The research, conducted by consumer specialists Finder, found that a year ago the majority of Aussies had a personal outstanding debt of around $18,000.
Jump forward to today – without even including mortgages – and that number has risen to $20,238, an increase of 11 per cent.
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According to the research, the average Aussie carries $1,948 in credit card debt, $6,920 in personal loan debt, and $11,370 in car loan debt, with the rise attributed in part to people having to turn to credit as the cost of living crisis intensifies.
"A significant number of people are having to turn to credit cards, buy-now-pay-later services and personal loans in order to cover day-to-day expenses like food and electricity," Amy Bradney-George, personal finance expert at Finder, said.
"With inflation at an all-time high, debt is making it even more stressful for people to put food on their tables."
The study also found that over half of all Aussies – some 54 per cent or over 10 million people – owned a credit card.
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A further 30 per cent admitted they are "extremely" stressed about their current financial situation – up from 22 per cent at this time 12 months ago.
"Debt can quickly get out of control and lead to bigger financial difficulties," Bradney-George said.
"When you are struggling to 'pay off the past', it stops you from saving for the future.
"Contact your providers to see if you can set up a payment plan that fits with your income.
"If your circumstances have changed, you can also talk to your bank's hardship support team about different options such as payment pauses.
"You could also shop around for better rates or consider debt consolidation to help manage repayments."
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