What to do now
Official pages: MoneySmart, Financial hardship, AFCA, Financial hardship complaints, AFCA, Make a complaint, Australian Banking Association, Financial assistance hub (bank hardship contacts). Free counselling: National Debt Helpline on 1800 007 007 (MoneySmart: Monday to Friday, about 9:30 am to 4:30 pm; live chat hours are listed on MoneySmart).
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Contact your lender's hardship team today. Search "hardship" on their website, use the ABA hub for bank contacts, or call the number on your statement. Say you are in financial hardship and ask for assistance. You can ask by phone, email, or chat. AFCA says any contact where you ask for help can count.
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Put the ask in writing as well. Email or message: who you are, the account or loan number, why repayments are hard right now (for example job loss, illness, reduced hours), what you can afford (or that you need a short pause), and that you want a financial hardship arrangement in writing. Keep a copy and the date.
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Be ready with simple numbers. MoneySmart says lenders typically ask why you need help, your income and major expenses, and what you can afford. Use MoneySmart's budget planner if you are unsure. Only agree to a plan you can keep. If you later cannot stick to it, tell the lender straight away and renegotiate (MoneySmart).
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Get free help if you need it. National Debt Helpline 1800 007 007. Aboriginal and Torres Strait Islander peoples: Mob Strong Debt Help 1800 808 488 (MoneySmart lists weekday hours). MoneySmart also lists Way Forward (1300 045 502) for free debt repayment plan support in hardship.
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Escalate to AFCA if the firm will not help properly. Lodge free at AFCA Make a complaint or call 1800 931 678. AFCA says it can consider hardship complaints where, for example:
- your hardship request was declined with no useful alternative or no reasons
- the firm does not respond to your hardship ask
- you receive a default notice while in financial hardship
- the firm continues debt recovery or legal action after you asked for hardship help
AFCA will usually ask you for a statement of financial position (income, expenses, assets, debts, and how you plan to repay). Soft cite: AFCA hardship complaints page.
This is legal information about financial hardship and AFCA complaint paths in Australia, not personal legal advice.
What a hardship arrangement can look like
From MoneySmart (check the live page for updates): options can include a temporary payment deferral, a lower repayment for a period, or another change to the contract. Arrangements may be temporary or longer term. A hardship arrangement listing on your credit report is different from a default listing. MoneySmart says a hardship arrangement does not itself damage your credit score the way a default can, and the arrangement listing is removed after about 12 months. Always confirm the current wording on MoneySmart.
Worked example with dates
- 1 September 2026: you lose overtime and cannot meet the next credit card minimum. You email the bank hardship team, say you are in financial hardship, attach a short budget, and ask for a three-month reduced payment. You keep the email.
- 8 September 2026: no useful reply. You call hardship, note the time and the staff name, and send a follow-up email referring to the 1 September ask.
- 15 September 2026: the bank declines without a workable alternative. You lodge with AFCA online the same day and keep the AFCA case number. You also call the National Debt Helpline for a free counsellor check on what you can afford.
If collectors are already calling
Asking for hardship with the original creditor or AFCA member is still the first path for regulated credit. If a debt collector is using threats, excessive calls, or misleading conduct, see Debt collector harassment. For insurance claim problems with the same free AFCA path, see Insurance claim denied or delayed. For card payments you dispute as not received, see Chargebacks and debit card disputes.
Energy and telco bills use different ombudsman schemes (not AFCA for the bill itself). Energy: Energy bill dispute (ombudsman). Phone or internet connection delays: NBN connection delays.