For Australians considering personal loans, the data is a timely reminder that lenders do not assess loan applications in isolation. Existing credit card limits, outstanding balances, buy now pay later commitments, repayment history and regular living costs can all influence whether a new loan appears affordable. Even if a borrower intends to use a personal loan for debt consolidation, the lender still needs to be satisfied that the new structure is suitable and manageable.

This is where card debt can become more complex than it first appears. Credit cards offer flexibility, but interest can compound if balances are not cleared. A personal loan, by contrast, usually has fixed repayments over a set term, which may make budgeting clearer. However, it is not automatically cheaper. Fees, comparison rates, loan terms and whether the loan is secured or unsecured all affect the total amount repaid.

The latest figures also extend the theme we noted in the previous RBA card data: household finances are still being tested by high living costs, and many borrowers are juggling more than one type of credit. That makes preparation more important than speed. Before applying, borrowers should review recent statements, check whether card balances are falling or rising, and consider how a new repayment would fit alongside rent, mortgage payments, utilities, insurance, transport and groceries.

If the goal is consolidation, the key question is not simply whether a lender will approve the loan. It is whether the new arrangement improves cash flow without encouraging fresh card spending. Closing or reducing unused credit limits may help some borrowers, but it should be considered carefully because credit history, access to emergency funds and lender policy can all matter.

A consideration is to run a repayment estimate using different loan amounts, terms and interest rates. This can help reveal the trade-off between lower monthly repayments and higher total interest over time.

For now, the RBA's payments data is less about one month of spending and more about a continuing pattern: Australians are relying heavily on flexible credit, and anyone considering a personal loan should compare the full cost, not just the advertised rate.