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High levels of debt are hurting the confidence of Australians as many grapple with the consequences.
Agile Market Intelligence’s Consumer Pulse revealed that debt anxiety is impacting 41 per cent of people across the country, and financial stress is impacting 32 per cent.
Over a third (35 per cent) of respondents said they are worse off financially than this time last year. Just 23 per cent said conditions have improved.
“When nearly half the population reports no change and only a fifth see improvement, it’s clear the recovery narrative hasn’t reached most households,” said Agile Market Intelligence director Michael Johnson.
“For those in financial distress, the past year has offered little relief. However, it does appear that the trends are moving in a slightly more positive direction.”
This data coincided with a study from Equifax, which revealed that consumer confidence is being subdued by these high levels of debt.
Between June quarter 2024 and June quarter 2025:
- Unsecured consumer credit applications increased 14.2 per cent.
- Credit card applications increased 13.4 per cent.
- Personal loan applications increased 8.5 per cent.
- Buy now, pay later applications increased 30.2 per cent.
The dollar value of delinquent accounts also increased. For mortgages, it grew 10.1 per cent over the year; credit cards increased by 9.6 per cent; and personal loans. 22.2 per cent.
“The increase in the amount of money in arrears indicates that many consumers are struggling to make payments, particularly on personal loan and mortgage accounts,” said Equifax’s chief solution officer Kevin James.
“This trend, coupled with the fact that the number of accounts in arrears remains stable, shows us that people with larger home loans are disproportionately falling into severe delinquency, reflecting growing financial pressure on households with higher-value mortgages.”
Despite this, there was a rise in the number of people entering loans. Brokers can expect increased attention as first home buyers’ intent to take out a loan increased 9 per cent between June quarter 2024 and June quarter 2025.
Mortgage applications rose by 4.9 per cent in this period. Auto loan applications increased by 0.9 per cent and secured consumer credit applications by 4.1 per cent.
Cash flows also remained steady for most, with 33 per cent in a positive position, compared to 20 per cent in a negative position, according to the Consumer Pulse.
“We’re seeing a plateau in household cashflow, but not a rebound. The question now is how long vulnerable groups can maintain this fragile equilibrium,” added Johnson.
[Related: High number of home owners experiencing ‘buyer’s remorse’]
