Kristy Robson, a managing financial counsellor at the Consumer Action Law Centre, said the growth in lending had been accelerated by automatic online loan approvals.

“The frictionless approval processes are damaging people’s financial capacity,” Robson said.

“It’s become so automated that individual customers’ circumstances aren’t being considered appropriately and they’re getting same-day approval on massive personal loans that they’re reaching for because they’re in financial hardship.”

The national debt helpline has seen an increase in people calling in with issues due to personal loans, Robson said.

“People really are struggling to make it through,” she said. “How, with the responsible lending laws, are they possibly getting approved?”