Financial Hardship Help – For Australians Falling Behind on Debt Repayments

Lost income, illness, a relationship breakdown or rising costs can happen to anyone. Find out what help you're entitled to, and get a free, confidential assessment of your debt options.

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Financial Hardship Help: The Short Answer

If you can't keep up with repayments because of illness, job loss, reduced income or another change in your circumstances, you can ask your lender for a hardship arrangement. This can mean lower repayments, a pause, or more time to pay. It is a legal right under the National Credit Code. If one arrangement won't fix the problem because there are several debts or the change is long term, options such as an informal debt agreement or a Part IX debt agreement may help.

Key Facts

You can ask for hardship help before you miss a payment. You don't have to be in default.
A request can be made by phone, email or online form. Lenders must respond in writing.
Energy retailers, telcos and lenders in Australia must have a financial hardship process.
Free financial counselling is available through the National Debt Helpline on 1800 007 007.
Debt Fix can assess your situation for free and, if you choose, negotiate with creditors for you.

Check Your Options – Free Assessment

You're Not Alone. Financial Hardship Happens to Good People.

Most people who contact us never expected to be here. A job ends, hours get cut, someone gets sick, a relationship breaks down, or the cost of rent, groceries and power simply outgrows the pay packet. Suddenly the credit card minimum, the personal loan and the Afterpay instalments all fall due in the same week.

Financial hardship isn't a character flaw. It's a situation, and situations can be changed. The sooner you act, the more options you usually have.

Talk to a Hardship Specialist

What Is Financial Hardship?

Financial hardship means you're willing to pay your debts but unable to meet your repayments right now, usually because something changed that you couldn't control.

Job loss, redundancy or reduced hours
TIllness, injury or a disability affecting your ability to work
Separation, divorce or the death of a partner
Family and domestic violence, including financial abuse
Natural disasters such as floods, bushfires or storms
Caring for a family member
Rising living costs: rent, mortgage, energy, groceries
A business downturn that affects your personal income

Temporary or long-term hardship?

Temporary hardship: you expect your income to recover within months, for example on sick leave or between jobs. A hardship arrangement with each lender may be enough.
Long-term hardship: your income has dropped for good, or your debts are now bigger than you can realistically repay. Pausing repayments only delays the problem, and a structured solution is usually needed.

Signs It's Time to Get Help

You've missed a repayment, or know you're about to

You're paying one debt with another credit card, payday loan or BNPL

You're getting calls, letters or texts from creditors or collectors

Your balances haven't gone down in six months or more

You're choosing between repayments and rent, food or bills

You're avoiding opening statements or answering the phone

The stress is affecting your sleep, health or relationships

Book a Free Debt Assessment

Your Right to Ask for a Hardship Arrangement

Under Australia's National Credit Code, if you can't reasonably meet your repayments you can ask your credit provider to change your contract because of hardship. Banks, credit card providers, personal loan lenders and many BNPL providers must consider your request. Energy retailers and telcos have their own hardship obligations too.

What a lender may offer

Reduced repayments for a set period

A temporary pause (moratorium) on repayments

A longer loan term, so each repayment is smaller

Waiving or reducing fees and, in some cases, interest

A payment plan for arrears

How to apply for hardship yourself

Contact the lender's hardship team by phone, email or their online hardship form. Say you are experiencing financial hardship.
Explain what changed and whether you expect it to be temporary.
Say what you can afford to pay, based on a realistic budget
Provide what they ask for, such as payslips, Centrelink statements or medical certificates.
Get the outcome in writing and keep a copy.

Hardship help by type of creditor

Creditor Who to contact What's commonly available

Banks, credit cards, personal loans The lender's hardship team Reduced or paused repayments, extended term, fee relief

Buy Now Pay Later The provider's hardship team Paused instalments, late fees stopped, payment plan

Electricity, gas, water Your retailer's hardship program Payment plans, protection from disconnection while on a plan

Phone and internet Your telco's financial hardship team Payment arrangements, service kept on reduced plan

ATO The ATO Payment plans for tax debt

Rent Your landlord or agent Repayment agreement for arrears

Does a hardship arrangement affect my credit report? A lender may record that you're on a hardship arrangement in your repayment history. It isn't a default. For how different options appear on your file, see our

When a Hardship Arrangement Isn't Enough

Hardship arrangements are designed for short-term problems. They can fall short when:

You owe several creditors, and each has a different process, timeline and outcome
The arrangement ends but your income hasn't recovered
Interest keeps adding up during the pause
You've already had arrangements that didn't stick
Your total debt is more than you could repay in a reasonable time

That's when a structured solution, one plan covering all your unsecured debts, may be the better path.

How Debt Fix Can Help You Through Financial Hardship

We've helped thousands of Australians in hardship find a solution that fits their income, not just their debts. After a free assessment we'll explain, in plain English, the options you may qualify for:

Informal Debt Agreement

We negotiate directly with your creditors to lower or pause repayments
Doesn't go on your credit report unless you default
Suited to temporary hardship and people who don't qualify for formal options

Part IX Debt Agreement

A formal, legally binding agreement under the Bankruptcy Act, regulated by AFSA
Interest and fees are frozen, with one affordable repayment
Protects you from most creditor action while you keep to the agreement
Affects your credit file and is recorded on the National Personal Insolvency Index

Debt Consolidation Loans (if eligible)

Combines several debts into one loan and one repayment
Subject to credit and income checks, and not always available in hardship

Speak With a Consultant for Free

Hardship Arrangement vs Informal vs Part IX Debt Agreement

Features Hardship arrangement Part IX Debt Agreement Informal Agreement

Who deals with creditors You, one lender at a time Debt Fix, on your behalf Debt Fix, as registered administrator

Covers several debts at once

Yes

Legally binding

Interest and fees Sometimes reduced Depends on creditors Frozen

Credit report May show a hardship flag Not listed unless you default Listed; also on the NPII

Typical length A few months 6–24 months 3–5 years

Best for Short, temporary setbacks Temporary hardship, low to moderate debt Long-term hardship, unmanageable unsecured debt

Cost Free Fees apply, no upfront fees Fees apply, no upfront fees

Our Financial Hardship Help Process

Free, confidential assessment

Tell us what's changed. We review your debts, income and budget. It usually takes 20–30 minutes.

Clear options, no pressure

We explain what you may qualify for, including the pros, cons and any credit file impact, before you decide anything.

We deal with your creditors

If you choose to go ahead, our team handles the negotiations, so you don't have to take the calls

Ongoing support

If your situation changes, we review your plan with you

Start With a Free Assessment

What Debts Can We Help With?

We can typically help with unsecured debts, including

Overdue bills & utilities

Secured debts such as mortgages and car loans can't be included in a debt agreement, but we can still talk you through your options

Why Australians in Hardship Choose Debt Fix

20+ Years of Experience

Helping Australians with debt since 2005.

Licensed & Regulated

Australian Credit Licence 393436 · AFSA Registered Debt Agreement Administrator (RDAA 1027) · AFCA member.

No upfront fees

We don't charge you to talk to us

No judgment

Speak with a real person who listens, not a script reader.

Australia-wide

By phone and online in every state and territory

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Read Our Success Stories in Helping Australians go Debt Free

Over 20 years of success stories across every state in Australia

Helen
Debt Value: $44,780

I experienced financial hardship as a result of a previous relationship where I was a victim of domestic violence and financial abuse. During this time, I was coerced into taking out a loan with a bank, which I was later left solely responsible for repaying.

William
Debt Value: $49,065

Everything started to unravel when my relationship with my ex-wife ended, and she was granted full custody of our children. This was an incredibly difficult time for me and had a significant impact on my mental health. During that period, I relied heavily on short-term, high-interest loans just to get by,

Eadie
Debt Value: $72,960

I ran into financial trouble after experiencing a period of unemployment, which led me to take out several loans to cover my living expenses. Unfortunately, I didn’t fully understand the high interest rates and short repayment terms involved, and this quickly trapped me in a cycle of debt that became unmanageable.

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Read Real Stories

Need Emergency Money or Free Counselling?

Debt Fix helps people deal with debts. If you need something else right now, these free services can help:

Emergency payments or Centrelink support: contact Services Australia about crisis and hardship payments.
Free financial counselling: National Debt Helpline, 1800 007 007.
Mental health support: Lifeline, 13 11 14.

Ready to Take the First Step?

No pressure. No upfront cost. Just honest help working out what's possible. Serving every state and territory in Australia.

Call Us Directly: 1300 332 834

Book a Financial Hardship Assessment

FAQs – Financial Hardship Help

Financial hardship is when you're willing to pay your debts but can't meet your repayments because of a change such as job loss, illness, separation, a natural disaster or rising living costs.

Yes. You don't need to be behind to ask. Contacting your lender early usually gives you more options and helps avoid late fees and defaults.

Contact the lender's hardship team by phone, email or online form. Explain what has changed and what you can afford, and provide any documents they request. Ask for the outcome in writing.

Ask for the reasons in writing. If you think the decision is unfair, you can complain to the lender, then to the Australian Financial Complaints Authority (AFCA) for free. Debt Fix can also check whether another option suits you.

A lender may note a hardship arrangement in your repayment history, but it is not recorded as a default. Missed payments without an arrangement can do more harm. Formal options such as Part IX agreements do affect your credit file.

A hardship arrangement is a short-term change agreed with one lender. A debt agreement covers several unsecured debts in one plan. It can be informal (not legally binding) or formal under Part IX of the Bankruptcy Act.

Yes. If you choose one of our solutions, our team handles communication and negotiation with your creditors, so you don't have to.

Your first assessment is free and confidential, and we don't charge upfront fees. If you go ahead with a solution, we'll explain any fees clearly before you commit. Applying for hardship directly with your lender is free.

Often, yes. It depends on whether your income leaves room for an affordable repayment. We'll assess your budget honestly and tell you if another path, such as free financial counselling, is a better fit.

Yes. The National Debt Helpline (1800 007 007) offers free financial counselling, and lenders, energy retailers and telcos all have hardship processes you can use directly.

Hardship arrangements usually last a few months. Informal debt agreements typically run 6–24 months, and Part IX debt agreements usually 3–5 years. We can often start your free assessment within 24 hours.

Yes. Debt Fix helps Australians in NSW, VIC, QLD, WA, SA, TAS, ACT and NT, by phone and online.