Why Am I Still in Debt with a Good Income? | Debt Traps for Aussie Families
We Earn a Decent Income — So Why Are We Still in Debt?
The sneaky spending traps that keep Aussie families stuck (and how to break free)
“We’re not broke… so why does it feel like we are?”
You’ve got a decent household income. You’re not living large, but you’re not scraping by either.
And yet — the credit card balance keeps creeping up. The savings never stick. The money always seems to disappear.
If that sounds familiar, you’re not alone.
Aussie families across the country are earning more than ever… but still feeling like they’re drowning.
And it usually comes down to one of three things:
Lifestyle inflation
Unconscious spending
Money systems that just don’t work
Let’s break it down — and more importantly, let’s talk about what you can do to flip the script.
1. Lifestyle Inflation: The “More In, More Out” Trap
You get a pay rise. Or a new job. Or your partner starts bringing in more.
And at first — it feels amazing. You can breathe a little. Maybe buy that nicer pram, go out more, upgrade the car.
But if you’re not careful, your expenses grow just as fast as your income — or faster.
That $70K lifestyle becomes a $90K lifestyle. Then $110K.
And you’re still wondering why there’s nothing left over.
The Fix:
Build a gap between your income and your expenses on purpose.
Use Dave’s 3-Bucket Budget to make sure more of your new money flows into:
Debt reduction
Savings
Wealth creation
Even a 10% shift makes a huge difference long-term.
2. Unconscious Spending: “It Doesn’t Feel Like Much…”
Tap. Tap. Tap.
A few snacks here
Uber Eats there
That random $24.99 monthly thing you forgot about
Plus the $800 birthday weekend you didn’t plan for
It’s not bad spending. It’s just untracked, unplanned, and unaligned with your goals.
We don’t feel it going out — but we feel the sting when there’s nothing left to show for it.
The Fix:
Start with awareness — not restriction.
Try one of these:
Do a 7-day spending diary
Use a banking app that categorises purchases
Set a “blow money” limit so you can still enjoy life — just on purpose
3. Debt Reliance: The Slow Leak That Feels Normal
Credit cards, Afterpay, personal loans — they’re part of Aussie life now.
But here’s the problem: We treat them like income, not debt.
We borrow to fill gaps instead of building buffers
We “consolidate” without changing the habits
We pay the minimum and keep the cycle going
And we normalise debt so much… we forget what financial freedom feels like.
The Fix:
Create a debt prioritisation plan (we teach this inside Wealth Together)
Tackle the high-interest stuff first
Stop using debt to plug planning gaps — use buffers and buckets instead
So Why Are You Still in Debt?
It’s not because you’re bad with money.
It’s not because you need another budgeting app.
It’s because the systems most people use are set up for survival, not strategy.
If you’re earning well and still feeling stuck, it’s time for a reset — not just in what you do, but how you think about money.
You need a system that works with your life, not against it.
Ready to Flip the Script?
Here’s where to start this week:
Do a quick income vs expenses snapshot
Track your spending for 7 days — just observe
Choose one thing to shift:
a) Cancel an unused subscription
b) Move $100 to savings before you spend
c) Put $50 extra on a credit card
d) Talk to your partner about the budget
e) You don’t need to fix it all at once. You just need to get back in the driver’s seat.
Final Thought: A Higher Income Should Bring More Freedom — Not More Pressure.
You’ve got the income. Now it’s time to get the outcomes.
We’ve helped hundreds of Aussie families untangle the debt cycle and start building real wealth — not just on paper, but in their lives.
You’re closer than you think.
Want a Hand Creating Your Personal Debt Break Plan?
Join us inside Wealth Together — our flagship coaching program where you’ll learn how to:
Master the 3-Bucket Budget
Ditch debt (without shame)
Finally get ahead — for good
