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Debt (Australian)

What debt actually costs, and the orders of repayment that cost least.

The largest free lever in debt repayment is holding your total monthly repayment steady as balances fall, rather than following the shrinking minimum down. Australian credit providers also have hardship obligations: if the repayments are genuinely unaffordable, asking for a hardship arrangement before you miss one is free, and does not itself damage your credit file.

What this section covers

  • What a carried balance really costs
  • Avalanche and snowball, compared on real figures
  • When cheaper credit is worth moving to
  • Where to get free help, and what to avoid paying for

Written for Australia. Terminology, protection limits and regulators differ between markets, so a guide from another country will not transfer cleanly.

Australian debt guides

    Answer

    Debt Snowball vs Avalanche

    One order costs less in interest. The other clears debts sooner. Run both on your figures and the answer usually settles itself.

    Updated 25 August 2026 · 3 min read

Calculators

Tools for debt

Run the numbers on your own situation.