Feeling overwhelmed by credit card debt? You’re not alone.

If you’re carrying personal debt right now, you’re far from alone. A recent Canstar report found that more than one in three Australians are living with personal debt (not including a home loan). For those who do have debt, the average amount has jumped a staggering 145% in just one year — from $6,200 to $15,200.

That’s a huge increase, and it’s no wonder so many people are feeling the pressure. Rising costs of everyday living mean that debt repayments often get pushed down the priority list, leaving the balance to grow. Before long, people can find themselves facing high interest rates, late fees, and a debt cycle that feels impossible to escape.

Why credit feels easy, but debt feels hard

Credit cards and Buy Now Pay Later (BNPL) schemes are two of the biggest drivers of personal debt. They’re easy to access, and they feel convenient in the moment. A quick tap, a split payment, or a “worry about it later” option can feel like the solution you need right now.

But here’s the reality: whether you pay now or later, the money still comes out of your account. The joy of the purchase is instant, but the stress of repayment lingers — and often grows. That “later” payment can quickly snowball into more than you expected, especially with interest rates or late fees added on.

You don’t have to do this alone

The good news is there’s help — and a way forward.

👉 Financial Counselling gives you immediate, practical support. A counsellor can help you understand your situation, work with creditors on your behalf, and create breathing room so you can take control again.

👉 Financial Coaching takes things a step further. It’s about understanding and reshaping financial behaviours. Helping individuals recognise spending patterns and dig into the underlying “why” behind their choices. It’s not just about knowing the consequences of Buy Now Pay Later or credit use — it’s about understanding the emotional drivers behind those behaviours. When people build this self-awareness, they’re better equipped to make informed, values-based decisions, rather than reactive ones that can lead to financial stress. Many people don’t realise how powerful coaching can be until they’ve had a conversation with someone who understands.

Why this matters for Gen Z

If you’re younger, you might be feeling this even more. The Canstar report shows Gen Z currently carry the highest levels of debt, even though they’re often the lowest earners. With credit and BNPL being so normalised, it’s easy to slip into debt before realising how quickly it adds up.

That’s why developing strong financial habits early can make such a difference. Coaching can help you shift your mindset, giving you confidence and control instead of constant stress.

Taking the first step

Debt can feel heavy, but you don’t have to carry it alone. Support is available — whether you need immediate help to manage your debts or want to build better financial habits for the future.

Remember: it’s easy to get into debt, but there is always a way out. With the right tools, guidance, and support, you can move from financial stress to financial confidence.

Useful tools to help you work out what you can afford are MoneySmart’s Credit Card Calculator

If you’re feeling overwhelmed and need some help to deal with your financial hardship, you can speak with one of our financial counsellors or coaches.