Average personal debt (excluding home loans) for an Australian is around $15,000 to over $20,000, depending on the source and when surveyed, with figures rising due to cost-of-living pressures, especially for credit cards, personal loans, and Buy Now Pay Later (BNPL). Younger Australians (Gen Z, Millennials) generally carry higher personal debt than older groups like Baby Boomers, while overall household debt including mortgages is significantly higher.
The average Australian household carried $313,633 in total debt in June 2025, with the majority coming from home loans. Mortgages remain the dominant source of debt, while personal loans, car loans, and credit cards continue to add pressure on household budgets.
If you're carrying serious credit card debt — like $15,000 or more — you're not alone. The average household with revolving credit card debt — that is, debt that they carry from one month to the next — had more than $7,000 worth of revolving balances in 2019. That's just the average.
The 28/36 rule in Australia is a financial guideline for borrowing, suggesting housing costs shouldn't exceed 28% of your gross monthly income, and total debts (housing, car loans, credit cards) shouldn't surpass 36% of your gross monthly income; it helps prevent mortgage stress by ensuring you can afford repayments, though Australian lenders often use slightly different (sometimes higher) benchmarks like 30% for housing costs, plus an APRA serviceability buffer.
If less than 30 percent of your income is going towards debt repayment that's considered superb (especially by potential lenders). If your ratio is over 40 percent, however, that's considered to be extremely high and a sure sign that your debt is potentially getting out of control.
U.S. consumers carry $6,501 in credit card debt on average, according to Experian data, but if your balance is much higher—say, $20,000 or beyond—you may feel hopeless. Paying off a high credit card balance can be a daunting task, but it is possible.
The credit limit you can expect for a $70,000 salary across all your credit cards could be as much as $14000 to $21000, or even higher in some cases, according to our research. The exact amount depends heavily on multiple factors, like your credit score and how many credit lines you have open.
According to ABS data, just 2.61 million Aussies – or about 10 per cent of the population – earn $100,000 or more a year. Many people will never reach a six-figure income in their working lives.
To borrow $800k in Australia, you generally need a gross annual income between $140,000 to $180,000+, depending on your expenses, interest rates, and lender, with a common rule of thumb being your mortgage repayments shouldn't exceed 30% of your gross income, requiring about $14,200/month or $170,400/year for an $800k loan at average rates. Use online borrowing power calculators from banks like Westpac or NAB for personalized estimates.
Tips for Getting Out of Debt When You're Living Paycheck to Paycheck
For a ₹30,000 monthly salary, a credit card limit between ₹60,000 and ₹90,000 is generally considered standard. Some lenders may offer up to 3 times your income, which could be ₹90,000, while the minimum might be double your income, or ₹60,000. A limit above ₹90,000 would be considered a "high" limit.
Older Aussies unsurprisingly hold more in savings, with Baby Boomers having $68,185 and Gen X having $40,266, on average. Young Aussies had less than the overall average, with Gen Y saying they had $37,085 in savings and Gen Z having $16,320, on average.
Key Takeaways. The average American had just over $105,000 in total debt as of the third quarter of 2024, according to last data release from Experian. Knowing how much you owe compared with others can give you a relative sense of your financial health.
For a $500,000 house, your average monthly mortgage payment (principal & interest) on a 30-year loan typically falls between $2,300 and $3,400, heavily depending on the interest rate; for example, at 5.44% it's around $2,820, while a 7.10% rate makes it about $3,360, but this doesn't include taxes, insurance (PITI), which add significantly to the total monthly cost.
If you can manage to rid yourself of debt by age 50, you'll be setting the stage for a financially healthy retirement. If you manage to pay off by then, you'll have several years to put your savings to your retirement funds, laying the groundwork for a comfortable life once you quit working.
Average Savings by Age: 35 to 44
Americans ages 35 to 44 had an average savings account balance of $41,540, according to the Federal Reserve survey.
DTI over 43% is typically considered too high by most lenders and may signal you're carrying more debt than you can comfortably manage. Types of debt also matter. High-interest consumer debts (like credit cards) are riskier than low-interest ones (like mortgages or student loans).
While exact real-time figures vary, estimates from around 2025 suggest approximately 400,000 to over 500,000 Australians held over $1 million in superannuation, with about 2.5% of the population reaching this milestone as of mid-2021, a figure that has likely grown with strong investment returns, though many more hold significant balances and millions are projected to reach this goal by retirement, especially men.
A low income in Australia varies, but generally involves earning below the median (around $1,425/week in Aug 2025) or below specific government thresholds, like the $948/week ($24,95/hr) National Minimum Wage (as of July 2025) for full-time work, with lower thresholds applying for benefits like the Low Income Health Care Card (around $800/week for singles). For tax purposes, incomes under $37,500-$45,000 might qualify for offsets, while affordable housing eligibility depends heavily on household size, with singles needing under $52,100 annually for low-cost options.
Living on low pay can lead people into debt and feelings of low self-esteem. Low pay is defined every year in relation to the cost of living by the Minimum Income Standard Project. By their calculations, for a single person household anything less than £28,000 a year, before tax, counts as low pay.
If you're just starting out, a good credit limit for your first card might be around $1,000. If you have built up a solid credit history, a steady income and a good credit score, your credit limit may increase to $5,000 or $10,000 or more — plenty of credit to ensure you can purchase big ticket items.
The 2/3/4 Rule is an informal guideline, primarily used by Bank of America, that limits how many new credit cards you can be approved for: two in a two-month (or 30-day) period, three in a 12-month period, and four in a 24-month period, helping lenders manage risk from frequent applications and "churning" for bonuses. It's a rule for applicants, not a limit on how many cards you should have, but a strategy for managing applications to avoid automatic denials.
Your income doesn't directly impact your credit score, though how much money you make affects your ability to pay off your loans and debts, which in turn affects your credit score. "Creditworthiness" is often shown through a credit score.