Black Friday deals drive rise in credit card debt as Australians feel spending pressure

Australians are preparing for a record Black Friday shopping weekend, but financial experts warn the rush of pre-Christmas discounts is pushing many shoppers deeper into debt.

Credit and charge-card balances attracting interest have climbed to $18.4 billion, the highest level since 2021, as more households rely on borrowed money to take advantage of sales. Data from Equifax shows credit card applications jumped 13.3% in the year to September, with personal loans rising 11.6%.

Many consumers, like Sydney shopper Wendy, are waiting for Black Friday itself to make purchases, hoping for bigger discounts. Despite planning to buy gifts for her grandson, she admits she won’t set a budget, saying she would “just blow it” anyway.

Financial counsellors warn that heavy marketing, festive expectations and social pressure make it difficult for people to stop spending. The National Debt Helpline reports an increase in buy now, pay later (BNPL) problems, with issues already up more than 7% on last year, even with six weeks left to report.

While wages growth and recent rate cuts have boosted confidence among some households, economists caution that overspending now could lead to financial stress early next year. Calls to the debt helpline typically surge after Christmas as bills and interest payments begin to pile up.

Black Friday officially falls on November 28, followed by Cyber Monday on December 1, though many retailers have already launched sales weeks ahead of time.