Debt Deferred: Why Millions of Australians May Never Escape Credit Card Debt

Key takeaways

Millions stuck in debt: Finder’s research shows 2 in 5 credit card holders (around 2.2 million Australians) don’t prioritise paying off their balances, leaving them vulnerable to spiralling interest costs.

The true cost of delay: Only making minimum payments means you’ll pay back much more than you borrowed, while interest compounds and eats away at your financial future.

Credit card debt limits wealth creation: Beyond draining your bank account, debt makes it harder to save, invest, or build wealth through property and can damage your credit score.

Have you ever noticed how easy it is to swipe a card but how hard it feels to pay it off?

For many Australians, credit cards are less of a convenience and more of a trap.

And according to new research from Finder, this is a growing concern that could keep millions of households stuck in a debt cycle for years to come.

The numbers that should worry us

A recent survey of over 1,000 Australians revealed that 40% of credit card holders don’t prioritise paying off their balances. That equates to around 2.2 million people essentially choosing to kick the can down the road while interest quietly eats away at their wealth.

Even more concerning:

• Almost 1 in 3 (29%) say they put other expenses ahead of their credit card repayments.

• 1 in 10 (11%) admit they simply can’t afford to pay down their debt.

• And women are more than twice as likely as men to say they can’t keep up with repayments (16% versus 7%).

That’s not just financial stress, it’s financial paralysis.

The cost of delay

Here’s the cold reality: every month you only make the minimum repayment, the banks win.

The interest compounds, and suddenly a $2,000 balance can drag on for years, costing you multiples of what you actually borrowed.

Credit card debt doesn’t just affect your wallet today.

It limits your ability to save, invest, or take advantage of opportunities in property and wealth creation.

And if repayments slip too far behind, your credit score suffers, making it harder to borrow for the things that really matter.

In other words, if you’re serious about building wealth, letting credit card debt sit there is like trying to run a marathon with lead weights strapped to your ankles.

The psychology here is powerful.

Credit cards give us instant gratification, buy now, deal with it later.

But "later" always arrives, and usually with added interest.

For many households juggling rising living costs, those repayments feel impossible.

But avoiding them only magnifies the problem.

Breaking free from the debt Cycle

The good news? There are practical steps you can take to regain control:

1. Budget first
   Create a realistic monthly budget that separates essentials from discretionary spending. Knowing your limits upfront helps stop impulse buys.

2. Track spending regularly
   Check your transactions frequently. Real-time monitoring keeps you accountable and reduces surprises at the end of the month.

3. Set limits
   Use your bank’s tools to set spending caps. It’s a simple guardrail against emotional spending, especially during sales.

4. Pay the balance in full where possible
   If you can’t, then aim to pay significantly more than the minimum. Every extra dollar chips away at interest instead of fattening the bank’s profits.

5. Consider a balance transfer card
   These can give you a breather with 0% interest for up to two years, but only if you stop adding new purchases.

And if you’re really struggling, reach out for help. Services like the National Debt Helpline offer free counselling that can help you get back on track.

Final thoughts

Credit card debt might feel like a small problem today, but left unchecked, it can snowball into one of the biggest obstacles between you and financial freedom.

The irony is that many Australians chasing wealth through property and investments are simultaneously bleeding money through interest repayments they could avoid.

If you want to create real, lasting wealth, make paying down bad debt a non-negotiable.

Because the sooner you stop giving away your hard-earned cash to the banks, the sooner you can start putting it to work for yourself.

About Chris Dang Chris Dang is an accountant by training and has worked in the Financial Planning industry for many years. Chris brings together property, accounting, and financial planning experience to help clients of Metropole Wealth Advisory create a holistic plan for their wealth.