9.7 million Australians to start 2026 in debt, Salvos research finds

MORE than 9.7 million Australians have started 2026 in debt, with almost half feeling pressure to spend more than they can afford, new research commissioned by The Salvation Army has found.

The national survey found 44 per cent of adults will begin the year in debt, while 89 per cent feel the same or more stressed about their finances than last year.

The Salvation Army is encouraging people to seek financial support through its free and confidential Moneycare financial counselling service.

The organisation said many Australians were unaware the service existed, despite more than 48,000 Moneycare sessions delivered last financial year.

The survey of 2,005 people found 45 per cent felt pressure to spend beyond their means, with embarrassment cited as a key driver by 43 per cent of respondents.

Among those starting 2026 in debt, 52 per cent reported credit card debt and 26 per cent reported Buy Now, Pay Later debt.

Kristen Hartnett, head of Moneycare at The Salvation Army, said the research showed many people were carrying financial stress in silence.

“We want people across the country to do a financial reset. The New Year is the perfect moment to take control of your financial situation, and Moneycare is here to help you do that,” Ms Hartnett said.

“Financial counselling is free, confidential and incredibly effective — but many people don’t realise it exists,” she said.

One person supported by the service said the assistance had made a significant difference to their life.

“The help you’ve given me has given me a reason to get out of bed and get moving. The financial side of things is no longer in the forefront of my mind and I can’t thank you enough for that,” they said.

Ms Hartnett said the service was available to anyone needing support with budgeting, debt or financial planning.

“Whether you need help creating a budget, support getting out of debt, or someone to talk to about realistic money plans, Moneycare is here for you,” she said.

“You are not alone, and there is no shame in reaching out,” she said.