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46% of Australians starting 2025 with debt, 30% unable to create a personal budget, new Salvos research finds
Salvos encourage Aussies to do a financial reset in 2025
The Salvation Army is calling on Australians to take a fresh look at their finances at the beginning of this year, with new research showing almost half of all Australians (46%) are starting 2025 in debt, 3.2 million (15%) don’t understand how interest works and almost one in three (30%) are unable to create a budget for themselves.*
This comes on the back of an expensive Christmas and holiday period for many Australians, where over 34% of Aussies used credit cards and 17% used buy now, pay later schemes to pay for Christmas. A shocking 6.3% borrowed money and 8.9% sold personal belongings so they could afford Christmas in 2024.
“The start of the year is the perfect time to take a fresh look at your finances and plan for the year ahead. Our research shows that people are really struggling, with the increased cost of living adding extreme pressure on individuals and families across the country, and many find themselves in crippling debt or financial distress,” said Kristen Hartnett, Head of The Salvation Army’s Moneycare.
The Salvos’ Moneycare service is a free and confidential financial counselling service which supports thousands of Australians each year to get on top of their financial situation. In the last financial year, Moneycare provided 52,000 sessions of care to those struggling with their finances, and 27% of those who reached out to Moneycare were employed.**
“We have noticed a worrying trend in the past year; Buy now, pay later products have overtaken credit cards as the most common form of debt amongst our community members, with many using these schemes to make ends meet, paying for items such as groceries and pharmaceutical items using these methods. This is particularly concerning, as many Australians do not view buy now, pay later products as a form of debt, when in reality it can lead to a rapid and crippling cycle of debt as a result of fees,” Kristen added.
“We also want people to know that they are not alone and there is no shame in reaching out. Please don’t delay- seek help early and reach out to Moneycare today.”
The Salvos’ Moneycare have free online tools and resources, as well as financial counsellors who are experts at getting you back on track. You can also speak to a free Moneycare financial counsellor anonymously via live chat.
If you or someone you know needs support from The Salvation Army’s Moneycare service, please visit salvationarmy.org.au/moneycare or call 1800 722 363.
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For more information, please contact The Salvation Army’s Media Relations Department on (02) 94663143
*A Pureprofile survey for The Salvation Army surveyed 2,004 people in a nationally representative sample size and this has been extrapolated to reflect the general Australian population. Extrapolated numbers are based on the estimated Australian population aged 18 and older, 21,357,108 based on ABS data as seen here - https://www.ibisworld.com/au/bed/population-aged-18-older/15015/
**The Salvation Army, Moneycare Outcomes Measurement, 2023-2024
