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.
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About the author
Enrique 'Kike' Faúndez is an Information Systems and Management Control Engineer from Universidad de Chile, with master’s degrees in Finance from Universidad de Chile and Industrial Engineering from Pontificia Universidad Católica de Chile. He has 15+ years of experience in regulated financial services across finance, operations, and digital product development. He founded CashControlly in Santiago, Chile, with the conviction that personal financial control should not be a privilege, but an accessible and well-designed tool.
- Master's in Finance, Universidad de Chile
- Master's in Industrial Engineering, Pontificia Universidad Católica de Chile
- Information Systems and Management Control Engineer, Universidad de Chile
- AI and ITIL certifications
- 15+ years in regulated financial services
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