ISCOVER
Housing stress has ranked among the biggest problems for Australians calling the National Debt Helpline, as demand for support continues to rise.
Demand for support via the National Debt Helpline has reached a six-year high, with more than 168,000 people reaching out for assistance during the 2024–25 financial year, making it the free service’s biggest year since 2018–19.
Housing stress, including issues with mortgages, rent, and rates, was among the most common problems for callers to the helpline during the year.
Other common challenges included issues with utilities, credit card debt, personal loans, and Australian Tax Office (ATO) debt.
Demand has remained high throughout the start of the new financial year, with more than 15,000 people seeking support in July 2025.
National Debt Helpline coordinator Vicki Staff said the figures showed how hard cost-of-living pressures were hitting Australians.
“Many of life’s essentials are just more expensive than they used to be. Our financial counsellors are hearing from many people struggling to pay for their utility bills and housing,” Staff said.
“These people are very distressed and worried about their financial future and families.
“We want people to know there is free support available. Please reach out for help if you’re worried about your finances.”
Against a backdrop of borrowers and small and medium-sized enterprises (SMEs) feeling the pressure from obligations, demand for debt consolidation remains strong as borrowers seek to simplify finances and, in some cases, reduce repayments by securing a favourable rate.
Speaking to The Adviser last month, Barry Saoud, general manager, mortgages and commercial at Pepper Money, said the non-bank lender is seeing robust demand from borrowers looking to consolidate debt, particularly from self-employed clients.
“With the cost of living staying high, interest rates moving around, and unsecured debts piling up, it allows clients to consolidate an unlimited number of debts to single, more manageable monthly repayment. It’s no surprise people are looking for ways to simplify things,” Saoud said.
“The Reserve Bank has pointed out that while most people are keeping up with repayments, many are feeling the pressure.”
[Related: How debt consolidation can help borrowers go from chaos to control]
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