Truth: Most Australians have debt, whether it’s a student loan, car finance, an existing mortgage or credit cards. So what matters isn’t the debt itself (or no one would ever be able to borrow money!). Rather, lenders take into account your existing debt to work out whether you can afford a new loan.
They do that by looking at how much debt you’re carrying relative to your total income. If you do have debt, always make your repayments on time. This shows lenders you are responsible with money, and can positively impact your chances of being approved.