Personal loans booming as cost of living drives Australians to borrow record amounts
Australians are taking out record amounts of personal loans as rising costs of living deplete savings. Financial experts note that this trend reflects significant economic pressure on households struggling to cover basic expenses.
Why it matters
Record personal debt levels can indicate underlying economic instability and potential future financial crises for households.
New personal loans issued by banks reached a record $5.1bn in the first three months of 2026, according to Australian Bureau of Statistics data. Photograph: Oscar Wong/Getty Images View image in fullscreen New personal loans issued by banks reached a record $5.1bn in the first three months of 2026, according to Australian Bureau of Statistics data. Photograph: Oscar Wong/Getty Images Australian economy Personal loans booming as cost of living drives Australians to borrow record amounts National debt helpline calls have increased alongside growth in new personal loans, which charged an average 9% interest in March
Uses official data and expert commentary to explain economic trends.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in