More than 65,000 Australians have contacted the National Debt Helpline in financial distress since the start of 2026, with most callers saying they are struggling to pay their home loans. The surge follows the Reserve Bank of Australia's decision to raise interest rates again on May 5, 2026, marking the 14th increase since May 2022.
The National Debt Helpline reported that the majority of callers are employed people and young families, many of whom have seen their monthly mortgage payments rise by over 50% since the tightening cycle began. The helpline, operated by Financial Counselling Australia, has seen a 30% increase in calls compared to the same period in 2025.
RBA Governor Michele Bullock stated that the rate hike was necessary to combat persistent inflation, which remains above the target band of 2-3%. However, critics argue that the cumulative impact of 14 rate rises is pushing households to the brink, with some facing the risk of default.
Financial counselors warn that many borrowers are depleting savings and relying on credit cards to meet mortgage repayments. The Australian Banking Association has urged customers in difficulty to contact their lenders early to discuss hardship options.
