Latitude Pay Debt Problems: What You Need to Know & How to Get Help (Australia 2026)

When LatitudePay launched, it promised to make shopping easier with interest‑free instalments. Thousands of Australians signed up to split purchases into 10 weekly payments. But as the cost of living spiked and job security wavered, many users found themselves juggling multiple BNPL plans alongside rent, utilities and credit card bills. If you’re struggling with Latitude Pay debt, you’re not alone—and there are clear steps you can take to regain control, especially if you’re a sole trader with business expenses.

LatitudePay: Key Facts & Why It Closed

LatitudePay was a buy now, pay later (BNPL) platform operated by Latitude Financial Services. It allowed customers to spend up to $1,000 and repay over 10 weekly instalments. However, in April 2023, Latitude announced that LatitudePay would stop accepting new customers and cease operations. Customers were told they could continue making purchases until 11 April 2023 but, after their final payment, the account would close.

Although LatitudePay is closed, existing customers must still honour payment plans. Failing to do so may lead to late fees, collection actions and damage to your credit score. Latitude’s BNPL successor, LatitudePay+, allows borrowing up to $3,000 with monthly fees, but it is by invitation only and subject to different terms. For this guide, “Latitude Pay” refers to customers still repaying old LatitudePay debts or using LatitudePay+.

Fees & repayment terms

According to Canstar:

• LatitudePay charged no fees if you pay on time.
• A $10 late payment fee applies when a repayment is missed. Fees are capped at $10 for purchases under $50 or $50 for larger balances.
• Missing three late payments reduces your spending limit, and five late payments closes your account.
• Some banks treat LatitudePay purchases as cash advances, charging separate fees.

LatitudePay is interest‑free, but remember: late fees add up quickly and can make small purchases expensive.

Credit checks & credit score impact

When you apply for LatitudePay, Latitude performs a soft credit check. While soft inquiries typically don’t lower your score, late or missed payments can still harm it. ASIC warns that if BNPL repayments cause you to miss other bills or fall behind, these missed payments or defaults may be reported to credit bureaus.

Legal reforms and consumer protection

From June 2025, BNPL providers—including Latitude—must hold an Australian credit licence, join the Australian Financial Complaints Authority (AFCA) and follow responsible lending rules. This means Latitude must assess affordability, assist customers in financial hardship and provide clear fee information. It will also perform credit checks to assess your ability to repay.

Common LatitudePay Debt Problems

1. Multiple BNPL accounts

Many consumers sign up for several BNPL services (Afterpay, Zip, humm, LatitudePay). Keeping track of different payment dates is challenging. ASIC’s research found that one in five BNPL users missed or were late paying other bills to meet BNPL payments.

2. Unexpected fees and spending limits

While late fees are capped, repeatedly missing payments can reduce your spending limit or close your account. Banks may also charge cash advance fees.

3. Closure confusion

Many customers were unaware that LatitudePay stopped accepting new customers in 2023. Some thought they could open new accounts, only to find the service closed. If you still have an active plan, your account will close automatically after the final payment.

4. Credit score anxiety

LatitudePay uses soft credit checks, but late payments can still impact your ability to get a loan or a phone plan. Changes to the credit laws mean BNPL defaults may soon appear on credit reports.

Latitude Hardship Care: How to Get Help

Latitude offers Hardship Care, which provides temporary or long‑term relief for customers struggling to make repayments. The Hardship Care page emphasises that life can be unpredictable and reaching out early is crucial. Here are the key features:

• Short‑term support: Reduced repayments while you get back on track.
• Long‑term support: Ongoing assistance for an extended period.
• Payment holidays: A temporary pause on payments to help you through tough times.

Latitude recommends completing an online Hardship Care application and aims to provide an outcome within 21 calendar days. When applying, you’ll need to provide:

• Account type and number.
• Employment status and reason for applying.
• Detailed financial information, such as income, expenses and other loans.

While your application is being assessed, continue making repayments as usual. If approved, Latitude will set up a personalised arrangement and stay in touch. If declined, Latitude will explain why and suggest other support.

Why customers apply for hardship

Latitude notes that customers may experience financial difficulty due to rising costs, unexpected bills, injury, unemployment, mental health issues, relationship breakdown, domestic violence, natural disasters and gambling difficulties. No matter the reason, Latitude’s Hardship Care team promises to work with you to find a solution.

Contacting Hardship Care

You can apply online or contact the Hardship Care team by phone or email:

• Phone: 1800 220 718 (Mon–Fri 8:30 am – 5 pm AEST).
• Email: hardshipcare@latitudefinancial.com (include your account details and reason for hardship).
• Third‑party support: You can authorise a family member or financial counsellor to apply on your behalf by completing a third‑party authority form.

Latitude also encourages customers to explore resources such as the National Debt Helpline (1800 007 007) and other community services. These agencies can help with budgeting, negotiation and legal advice.

Debt Solutions for Sole Traders

Many LatitudePay users are sole traders who use BNPL to purchase equipment or stock. Sole traders operate as individuals rather than companies, which means business debts are legally the same as personal debts. Here are options tailored to sole traders:

1. Negotiate a repayment plan with Latitude

Contact the Hardship Care team to explain how your business revenue has dropped or costs have increased. Request a reduced repayment schedule or a payment holiday. Keep records of your communications.

2. ATO payment arrangements

If your Latitude debt has indirectly contributed to tax debt (e.g., you used LatitudePay for business expenses and now owe GST), you can apply for an ATO payment plan. The ATO generally allows instalments based on your capacity and may remit penalties for voluntary disclosure.

3. Part IX Debt Agreement

Sole traders with multiple debts (Latitude, credit cards, personal loans) can consider a Part IX Debt Agreement. This is a legally binding arrangement under the Bankruptcy Act that consolidates unsecured debts into one affordable repayment, freezes interest and stops enforcement. Once the agreement is in place, creditors cannot pursue you for more money, and interest and fees are frozen.

4. Bankruptcy or Personal Insolvency Agreement

If debts are unmanageable and your business has failed, bankruptcy may discharge most unsecured debts after three years. However, it has serious consequences, including restrictions on running a business and impact on your credit file. A Personal Insolvency Agreement is a formal compromise with creditors—similar to bankruptcy but more flexible. Seek advice from a registered insolvency practitioner before considering these options.

5. Informal Arrangements with Creditors

For smaller debts or when you need more flexibility, you can negotiate directly with each creditor to reduce payments or settle for a lower amount. This is less formal than a debt agreement and may be appropriate if your financial issues are temporary.

6. Business restructure

While the Small Business Restructure process is designed for companies, not sole traders, sole traders can still restructure informally by renegotiating supplier terms, selling non‑essential divisible property and focusing on profitable products. Speak to an accountant or business advisor.

Additional Tips for Managing Latitude Pay Debt

• Prioritise payments: Ensure essential bills (rent, utilities, food) are paid first. BNPL services should never take precedence over housing or tax obligations.
• Limit the number of BNPL accounts: Each BNPL account increases your repayment obligations. Consider closing inactive accounts to avoid confusion.
• Monitor your credit score: Even though Latitude uses soft checks, defaults can appear on your credit report as BNPL becomes regulated.
• Use a budget planner: Government tools like Moneysmart’s budget planner can help you visualise income and expenses and identify savings.

Seek independent advice: Financial counsellors can help you create a plan and negotiate with Latitude and other creditors.

Frequently Asked Questions (FAQs)