As 2026 gets underway, millions of Australians are starting the year in a financial hole \u2014 juggling bills, credit cards, and overdue payments. The debt crisis, the Salvation Army warns, is deepening faster than many realise.<\/p>\n\n\n\n
The Salvation Army\u2019s Moneycare service has revealed that a growing number of Australians are seeking help to manage unmanageable debt. More than 2.5 million households are believed to be struggling with repayments, as rising living costs and high interest rates continue to squeeze family budgets.<\/p>\n\n\n\n
The report found that credit card balances, personal loans, and buy-now-pay-later accounts are among the biggest contributors to mounting household debt, reports 9News<\/a>. Many families entered the new year already behind on essentials such as rent, energy bills, and groceries.<\/p>\n\n\n\n Financial counsellors say that for many Australians, the combination of inflation and higher borrowing costs has created a \u201cperfect storm<\/em>\u201d of financial stress. Some are relying on short-term loans to cover basic expenses \u2014 a risky move that often leads to deeper debt traps.<\/p>\n\n\n\n