Share of personal debt in Australia November 2019-2023, by type

According to a survey conducted in November 2023 among Australian consumers, 48 percent of respondents accumulated debt in the form of credit cards. According to the source, 2023 Buy Now, Pay Later (BNPL) services became the second most common form of personal debt in Australia.  

Personal debt on the rise

According to a survey, the average value of personal debt (excluding home loans) across all generations in Australia had increased between 2020 and 2021. While this is unlikely only attributed to the accessibility of BNPL services, some financial advisors have voiced their concerns about the overuse of such services. In a recent survey among financial advisors, most respondents stated that among their clients with BNPL debt, the majority were struggling to pay living expenses.

Buy Now, Pay Later services

Buy Now, Pay Later services are widely available across Australia. As the name implies, consumers can purchase a product immediately using a credit service, while paying off the purchase amount in pre-agreed installments. Little to no fees are charged unless the installment payments are not made as agreed. A quarter of Australians who shop online have used this form of payment on clothing or accessory purchases. Afterpay, Zip, and Latitude Pay were all commonly known BNPL services in the country. It is not uncommon for consumers to have multiple BNPL accounts, largely because a particular store did not offer an existing service provider.