Money3 Loan Debt Help: Navigating High‑Cost Loans and Tax Debt Relief in Australia

Understanding the challenge

If you’ve been juggling a Money3 car or personal loan alongside other bills, you’re not alone. Recent Moneysmart research found 47 percent of Australians with debt—approximately 5.8 million people—struggled to meet repayments during the past year, yet only one in five sought assistance. Many borrowers didn’t know help was available or were deterred by stress, shame and distrust of financial institutions. These feelings are amplified when dealing with lenders like Money3, where interest rates can be high and repayments quickly become unaffordable.

In this guide, we examine why Money3 loans can become unmanageable, what your rights are when you fall behind, and the support services available across Australia. Whether you’re in Sydney, Melbourne, Brisbane, Perth, Adelaide, Hobart, Canberra or regional communities, this article offers practical steps for regaining control of your finances.

Who is Money3 and why can their loans be hard to manage?

Money3 is an alternative lender that specialises in used‑car finance and personal loans. While the company markets itself as giving everyone “a fair go,” its products often carry high fees and comparison rates. For example:

Loan example	Fees and repayment	APR & comparison rate	Source
$5,000 car loan over 24 months	Loan fees of $1,909.35; total repayable $6,909.35	13.95 % APR, 34.16 % comparison rate	Money3 car loan examples
$25,000 car loan over 60 months	Fees of $14,850.43; total repayable $39,850.43	13.95 % APR, 20.38 % comparison rate	Money3 car loan examples

The comparison rate combines the interest rate and fees to show the true cost. Money3’s small loans can therefore carry comparison rates exceeding 30 percent. On a limited income, repayments can consume a large share of your budget. People in remote or regional communities, particularly First Nations families, have reported being trapped in unaffordable Money3 loans.

The responsible lending case against Money3

In September 2025 the Federal Court found Money3 had breached responsible lending obligations. ASIC alleged that the company failed to make reasonable inquiries about borrowers’ living expenses and, in one case, about their needs. The court held that Money3 did not verify borrowers’ expenses and should have paused some loans. Consumer advocates noted that many affected customers were First Nations people living in regional and remote areas.

Although the breaches related to a small number of loans, the case highlights the importance of lenders assessing whether a loan is suitable and affordable. ASIC’s chair, Joe Longo, said the decision sends a strong message that lenders must follow the law and that ASIC will continue to enforce responsible lending. If you feel a lender failed to properly assess your circumstances, you can complain directly to the lender and, if unsatisfied, lodge a complaint with the Australian Financial Complaints Authority (AFCA).

Your rights and options if you can’t afford your Money3 loan

Contact Money3’s Member Support early

Money3 states that it will work with customers experiencing hardship. You can amend your repayment schedule by:

• Calling 1300 014 870 during business hours, or requesting a call‑back.
• Emailing customercare@money3.com.au.
• Completing the repayment enquiry form on their website.

Provide your loan ID and explain why you’re struggling. Money3 says it offers flexible payment options designed around customers’ needs. Ask whether they can temporarily reduce or defer repayments, waive or reduce interest, or extend the loan term.

Request a hardship variation

All credit providers, including Money3, must consider requests for financial hardship. Under the National Credit Code, you can write to the lender asking them to:

• Postpone or reduce repayments for a short period.
• Freeze or reduce interest and fees for a few months.
• Extend the loan term so repayments are lower.
• Waive late fees or default charges.

The Financial Rights Legal Centre notes that lenders may agree to these measures and that you should only commit to repayments you can afford. While negotiating, keep making payments you can afford and maintain records of all communication.

Seek free help early

If your Money3 loan has become unmanageable, contact the National Debt Helpline (NDH) on 1800 007 007 for free, confidential advice. Financial counsellors can help you prepare hardship requests and explore other options. Moneysmart recommends using a budget planner and calling the NDH if you can’t afford repayments. The NDH can also refer you to local services like Mob Strong Debt Help and ICAN (Indigenous Consumer Assistance Network) for culturally appropriate support.

Know your complaint options

If Money3 refuses or fails to respond to your hardship request within 21 days, you can lodge a complaint with AFCA (www.afca.org.au) for free. AFCA can order lenders to offer hardship arrangements, waive interest or fees, or compensate borrowers. When complaining, include evidence such as your financial statements, a record of communications and any repayment offers.

Unsecured debt solutions beyond Money3

Consolidating or refinancing loans

Consolidating multiple debts into one loan with a lower interest rate can make repayments more manageable. You may be eligible to refinance with your bank or credit union, especially if your credit has improved since taking out your Money3 loan. However, beware of replacing unsecured debt with secured debt (like a car) because you risk losing that asset if you fall behind.

Informal payment arrangements

You can negotiate directly with creditors—including Money3—to reduce your debts or extend repayment terms. Informal agreements are not recorded on your credit report and avoid the stigma of formal insolvency. The Financial Rights Legal Centre warns that some “debt negotiation” firms charge high fees and often pressure clients into expensive formal debt agreements. Where possible, negotiate yourself or seek help from a free financial counsellor.

Formal debt agreements versus informal arrangements

If you are insolvent (unable to pay your debts when they fall due), you may consider a Part IX debt agreement (also called a formal debt agreement). This is a legally binding compromise with your creditors to pay a portion of your debt. However, the Financial Rights Legal Centre cautions that formal debt agreements are an act of bankruptcy and can be expensive; they usually involve paying a lump sum or instalments plus high administrative fees. In contrast, informal agreements are simply negotiated arrangements with creditors; there is no court process and no listing on your credit file. Before entering a formal agreement, explore all alternatives and seek independent advice.

Bankruptcy

Bankruptcy is a last resort. It releases you from most unsecured debts after three years but severely impacts your credit and may require you to contribute income or sell divisible property. Speak to a financial counsellor or a community legal centre before considering bankruptcy.

Tax debt relief: ATO assistance for Money3 customers

Many Money3 borrowers also owe unpaid tax or BAS. The Australian Taxation Office (ATO) provides several options to manage tax debts:

1. Payment plans: You can apply online or by phone to pay your tax in instalments. The ATO notes that payment plans allow you to “pay off your tax debt in instalments but you’ll still be charged a general interest charge,” so paying as quickly as possible reduces interest. Separate plans may be required for different tax accounts.
2. Compromise of tax debt: In limited circumstances, the ATO may accept a lesser amount and not pursue the balance. This is called a compromise. The ATO emphasises that strict criteria apply and you must write a detailed application demonstrating you’re insolvent; other options such as payment plans and penalty remissions will be considered first.
3. Release from tax debt: If paying tax would leave you unable to afford basic needs (food, accommodation, medical care), you may apply for release from certain tax debts. The ATO grants release only where serious hardship exists. Release is available for individual income tax, PAYG instalments and FBT debts, but not GST or superannuation debts. Applicants must provide evidence of income, expenses, divisible property and liabilities.

How to apply

To explore payment plans, call the ATO on 13 28 65 or use their online payment plan estimator. For compromise or release applications, speak to a financial counsellor or tax agent to assess your eligibility. Keep paying what you can while your application is reviewed.

Government and non‑profit support services

The following table lists free services across Australia that can help Money3 borrowers with debt, financial counselling and legal advice. Numbers are current as at March 2026.

State/Territory	Financial counselling / debt helpline	Legal & advocacy services	Notes
Australia‑wide	National Debt Helpline 1800 007 007	AFCA 1800 931 678, Financial Rights Legal Centre 1300 845 745	Free phone counselling, dispute resolution and legal advice
New South Wales & ACT	Financial Rights Legal Centre (financial counselling)	Legal Aid NSW, ACT Legal Aid	NSW and ACT residents can also contact Mob Strong Debt Help for First Nations support
Victoria	MoneyHelp 1800 007 007	Consumer Action Law Centre (CALC)	CALC advocates for consumers in debt disputes and provides free legal advice
Queensland	Financial Counsellors Association of QLD	Legal Aid Queensland	Indigenous consumers can contact ICAN (Indigenous Consumer Assistance Network) for culturally appropriate assistance
South Australia	Uniting Communities 1800 007 007	Legal Services Commission SA	Rural communities can also contact the Rural Financial Counselling Service
Western Australia	Financial Counsellors Association of WA	Legal Aid WA	Free face‑to‑face counselling available through community organisations
Tasmania	Anglicare 1800 007 007	Legal Aid Tasmania	Specialist debt counsellors available through various charities
Northern Territory	NT Financial Counsellors (through NDH)	NT Legal Aid Commission	Statute‑barred debt periods are shorter in NT (3 years instead of 6)

Putting it all together: your next steps

Facing an unmanageable Money3 loan can feel overwhelming, but you have rights and options. Start by contacting Money3’s customer care team and negotiating a realistic repayment plan. If that fails, lodge a hardship request and—if necessary—complain to AFCA. Use free financial counselling services to explore debt consolidation, informal agreements or, as a last resort, formal debt agreements or bankruptcy. If you also owe tax, contact the ATO to arrange a payment plan or discuss compromise or release options.

Remember that you are not alone. Millions of Australians struggle with debt, and there is no shame in seeking help. Taking action early increases your chances of saving your vehicle, preserving your credit score and reducing stress.

Frequently Asked Questions (FAQs)