Personal loan arrears jumped by over 6% across all age-groups over 2024, illion said in their March Consumer Stress Barometer.

“Young Australians, particularly those in their 20s and 30s, are experiencing increased financial pressures. The report revealed that under-30s saw a 4% increase in credit default risk in 2024, four times the average rate of all credit consumers” illion said.

“In 2024, rents for lower-income households rose by 15%, while national savings fell by 19%. Some Australians are turning to unsecured debt, with a 2.5% rise in credit stress among personal loan holders in 2024, a fivefold increase compared to mortgage holders.”

By contrast, mortgage holder risk is beginning to stabilise, having risen by 0.5 per cent over the last 12 months. Home loan arrears improved, pulling back 6% against the rise of 25% in 2023.

The report found Buy Now, Pay Later spending surged 32% in 2024 as more households used instalment payments to manage cash flow and avoid traditional credit card debt.