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Personal loans booming as cost of living drives Australians to borrow record amounts

June 6, 2026 5:22 PM GMT · Guardian Banking

National debt helpline calls have increased alongside growth in new personal loans, which charged an average 9% interest in March

Australians are borrowing record amounts in personal loans as a long-term buildup in living costs wipes out savings buffers.

New personal loans issued by banks reached a record $5.1bn in the first three months of 2026, according to Australian Bureau of Statistics data.