Humm Debt Help Options – Understanding Fees and Relief for Small Business

Millions of Australians rely on humm to buy household goods, pay for medical treatments and even finance home renovations. Unlike Afterpay or Zip Pay, humm offers credit limits up to $50,000 and repayment terms of up to 10 years. That can make big dreams feel achievable – until unexpected bills, fluctuating income or economic shocks make those instalments hard to manage. If you’re feeling overwhelmed by humm repayments, this guide explains your rights, the true cost of humm loans and how to get help, including options for small business owners.

How Humm Works: Beyond BNPL

Humm began as a buy‑now‑pay‑later (BNPL) provider but has evolved into a consumer finance platform. Instead of four interest‑free repayments, humm offers two product types:

1. Little Things (formerly BNPL): Intended for smaller purchases (e.g., furniture or electronics). This product is often interest‑free but still charges a monthly account fee and late fees if you miss a payment.
2. Humm Loans (Big Things): For larger purchases up to $50,000. These fixed‑rate loans can run for several years and include:
   • A one‑off establishment fee to set up the loan.
   • A monthly loan fee charged on the recurring repayment date.
   • A late payment fee of $20 if you miss a repayment.
   • A progress draw fee each time you access funds.
   • Interest rates that vary by merchant and loan amount.

Under new laws, humm is classified as a low‑cost credit contract when the loan is interest‑free. This means interest cannot be charged, and total fees are capped. However, many humm loans are not interest‑free. Always check your loan schedule and product terms.

Credit checks and eligibility

Humm conducts a credit check on every application. You must be at least 18 years old, an Australian citizen or permanent resident, and have a regular income. For small businesses, humm may require a company director’s guarantee, meaning you could be personally liable if the business can’t repay the loan. High credit limits might seem attractive, but they can quickly lead to unmanageable debt if your circumstances change.

New BNPL Regulations Protect Borrowers

Historically, BNPL providers operated outside the National Credit Code. From mid‑2025, the Australian Government will require BNPL providers, including humm, to follow the same credit laws as traditional lenders. This provides important protections:

• Credit licensing & AFCA membership: BNPL companies must be licensed by ASIC and join the Australian Financial Complaints Authority (AFCA), giving consumers access to free dispute resolution.
• Responsible lending: Humm must assess whether a loan is affordable and consider whether you can repay without substantial hardship. They must collect basic information about your income and expenses.
• Financial hardship assistance: Providers are now legally required to consider how they can help customers who fall behind on payments. Options may include pausing or reducing repayments, waiving fees or restructuring your loan.
• Credit checks: The new laws allow BNPL providers to use simplified credit checks. Humm will look at your credit report to see your existing debts. Missed payments could be recorded as defaults, so staying on top of repayments is essential.

These reforms aim to balance convenience with consumer protection. They ensure that humm cannot push you into unaffordable debt and must help if you experience financial difficulty.

Recognising When Humm Debt Is Unmanageable

Borrowers often tell us they didn’t realise how much they owed until repayments overlapped with other bills. Warning signs include:

• Monthly fees piling up – Unlike interest‑free BNPL products, humm loans can include an establishment fee, monthly loan fee and progress draw fee. These add up quickly.
• Multiple humm loans or high limits – Humm allows limits up to $50,000 with terms up to ten years. Borrowers may overextend themselves without realising the long‑term commitment.
• Using humm to cover other debts – If you’re using humm to pay for essentials like utilities or to cover other loan repayments, this indicates a bigger budgeting issue.
• Missed payments and late fees – A $20 late fee is charged for each missed payment. Over time, those fees can exceed the purchase cost.

If any of these apply, it’s time to explore your options.

Humm Hardship Assistance

Humm encourages customers experiencing financial stress to contact them. On their hardship page, humm states: “If you’ve found yourself in a challenging situation, get in touch to discuss reducing your repayments”. You can request:

• Reduced installments for a temporary period.
• A payment pause while you recover from job loss, illness or other hardship.
• Fee waivers if you can’t afford late charges.
• Extended loan terms to lower your monthly payments.

Humm will ask for your personal details, reason for hardship (health, employment, over‑commitment etc.), and expected duration of hardship. They will then assess your situation and offer options. If you’re a small business customer, talk to humm about reducing installments on multiple loans or adjusting repayment dates to match your cash flow.

What if Humm Refuses or Doesn’t Respond?

If humm doesn’t offer a solution or you’re unhappy with their response:

1. Continue paying what you can to show you’re acting in good faith.
2. Lodge a complaint directly with humm. Keep records of every call and email.
3. Escalate to AFCA – Since humm must be an AFCA member, you can file a complaint for free. AFCA can require humm to reduce your repayments, waive fees or adjust the loan.

Small Business Debt Relief Options

Many small business owners use humm to finance equipment or renovations. When sales drop or costs rise, those repayments can feel impossible. Here are some solutions beyond humm’s hardship assistance:

1. Negotiate a Payment Plan

Contact humm and ask to restructure your loan. Provide evidence of reduced turnover, increased costs or seasonal fluctuations. Humm may agree to lower payments or extend the term. For company directors, ask whether the director guarantee can be amended or paused while you restructure the business.

2. ATO Payment Plans

If unpaid humm loans lead to tax debt (e.g., because you can’t claim GST credits until you pay suppliers), you can negotiate with the ATO. The ATO generally allows instalment plans based on your ability to pay. Engaging early can prevent penalty interest from accruing. There are also voluntary disclosures that reduce penalties if you missed BAS lodgments.

3. Small Business Restructure (SBR)

The Small Business Restructure process gives eligible incorporated businesses a chance to compromise debts while retaining control. Under Part 5.3B of the Corporations Act a small business may propose a restructuring plan to its creditors while directors remain in charge. The plan must offer creditors a better return than liquidation and must be supported by the ATO (often the major creditor). This process can include humm loans and other unsecured debts.

To prepare an SBR, you need:

• Three years of financial statements.
• Details of all debts and divisible property.
• Evidence that employee entitlements and tax lodgements are up to date.
• A restructuring practitioner to help draft the plan and negotiate with creditors.

If creditors vote to accept the plan, unsecured debts (like humm loans) are compromised and repayments become manageable. This can save your business without forcing you into liquidation.

4. Voluntary Administration or Liquidation

If an SBR isn’t viable, you might consider voluntary administration or liquidation. An administrator assesses options and, if the business can be saved, may propose a Deed of Company Arrangement. Otherwise, liquidation winds up the company and sells divisible property to repay creditors. This is a last resort; speak to an insolvency practitioner before proceeding.

Other Debt Help Options

• Debt Consolidation Loans: If you have multiple humm loans or other debts, a debt consolidation loan may combine them into one manageable payment. Ensure the new loan has a lower overall cost and consider whether you qualify given your credit history.
• No‑Interest Loans (NILs): For essentials like furniture or medical equipment, Good Shepherd offers no‑interest loans up to $2,000–$5,000. These can be a safer alternative to humm if you qualify.
• Financial Counselling: The National Debt Helpline (1800 007 007) offers free, independent advice across Australia. Counselors can help you negotiate with humm, plan a budget and explore options like bankruptcy or debt agreements.

For Renters and Homeowners

Renters and homeowners also struggle with humm debt. Remember that each state has support programs. For example, WA’s rent relief program offers one‑off payments for tenants in arrears, while Queensland’s Rental Security Subsidy helps cover rent when incomes drop. If humm repayments are pushing you behind in rent, contact local housing agencies.

How to Stay Out of Humm Debt in Future

1. Borrow only what you can afford – Before using humm, check whether the repayments fit your budget. Remember interest and fees vary and are often higher than BNPL services.
2. Limit the number of accounts – Having multiple BNPL accounts can make it harder to track payments and could affect your ability to get other credit.
3. Read the contract – Understand fees, interest rates and the total cost of the loan. If it’s a Low Cost Credit Contract, ensure the fees are capped.
4. Stay on top of payments – Automate your repayments and set reminders to avoid late fees.

Seek help early – If you anticipate trouble, contact humm before you miss a payment.

Frequently Asked Questions (FAQs)