How to stop the cycle and start a plan
Thousands of Australians resolve serious debt situations every year, many with debts larger than yours. There are formal hardship protections in Australian law, free professional help through the National Debt Helpline, and options most people don't know about. Here's how to start.
Need to talk to someone? 1800 007 007 — National Debt Helpline, free and confidential.
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We'll show you local numbers, services, and rights specific to your state.
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The first step is to stop the cycle. No new credit cards, no payday loans, no borrowing from friends. If you're using credit to pay credit, it's time to break the pattern. Cut up the cards if you need to — you can always get new ones later.
Write down every debt: who you owe, how much, the interest rate, and the minimum payment. Include everything — credit cards, personal loans, buy now pay later, money owed to family, car finance, everything. You can't make a plan until you see the full picture.
Call 1800 007 007 and speak to a free financial counsellor. They see situations like yours every day. They can talk through your options, help you apply for hardship programs, coach you on what to say to creditors, and refer you to a face-to-face financial counsellor who can negotiate on your behalf. This call is the single most important thing you can do.
If debt collectors are calling, know this: they cannot harass you, they can only call at certain times, you can request communication in writing only, and you can dispute the debt. See the debt collector rights section below. You have more power than you think.
Banks, credit cards, personal loans, energy, phone: all must consider a hardship request and respond. Call each one and ask for hardship assistance. They may pause repayments, reduce interest, waive fees, or extend terms. You have a legal right to ask, and they must genuinely consider your request.
Some old debts may be too old to enforce. For most unsecured debts the limit is 6 years (3 in the Northern Territory) from when you fell behind, or from your last payment or written acknowledgement if that was later. Mortgages and court judgments have longer limits. The debt isn't wiped: a creditor can still start court action, and you have to raise the time limit as a defence, so never ignore court papers. While the time is still running, even a small payment or a written admission can restart it, and asking for a statement of 'your' debt can count. In NSW, a payment after the limit has passed doesn't bring the debt back; other states may differ. Debts this old are rare. If a debt might be that old, talk to the National Debt Helpline (1800 007 007) before you pay anything or put anything in writing.
For serious debt, there are formal options: a Debt Agreement (Part IX) lets you pay back a portion of your debts over time. Bankruptcy has serious long-term consequences. A financial counsellor will help you understand if either is right for your situation — never make these decisions alone.
Your rights, who to call, and free services — everything in one place.
You can apply for a hardship variation on any loan, credit card, car finance, or mortgage. Since June 2025, buy now pay later services like Afterpay and Zip are also covered. Call your lender's hardship team (not general customer service) and tell them you're experiencing financial hardship and would like to discuss your options.
Your lender must respond to your hardship notice within 21 days. If they need more information, they must request it within 21 days, then respond within 21 days of receiving it. NAB was fined $15.5 million in 2025 for failing to respond to 345 hardship customers — this law is enforced.
Your lender must consider your request and respond within about 21 days. If they say no, they must tell you why in writing and how to complain to AFCA. Options you can ask for include reduced repayments, a repayment pause, an interest rate freeze, fee waivers, or a longer loan term.
If you give your lender a hardship notice, they cannot START court enforcement until they have given you a written decision saying you have not agreed, and 14 days have passed since that notice. They can still send a default notice in the meantime, and can still take mortgaged goods if they reasonably believe you are disposing of them or urgent action is needed to protect them. The protection does not apply if you gave a hardship notice on materially the same basis in the previous four months. Ask them, in writing, to pause collection activity while they assess it.
When you enter a hardship arrangement, a note appears on your credit report, and it's removed 12 months after the arrangement ends. A default listing, on the other hand, stays for 5 years and seriously damages your ability to borrow. Asking for help early is one of the best ways to avoid a default.
You can ask your lender to extend the loan term, reduce or defer repayments, pause interest, waive fees, or restructure the debt. In severe cases, part of the debt may be written off. Fee waivers and reduced repayments are the most common forms of help.
If your lender refuses your hardship request or offers inadequate help, you can lodge a free complaint with the Australian Financial Complaints Authority. AFCA can order the lender to vary your contract, refund fees, reverse interest charges, and award compensation up to $631,500 for direct loss.
Debt collectors should tell you who they are, who they're collecting for, and the amount owed. They must check they're speaking to the right person, and shouldn't pursue you unless they have reasonable grounds to believe you owe it.
Collectors cannot use threats, aggressive language, or intimidation. They cannot imply criminal consequences for unpaid debt (most debts are civil, not criminal).
The guideline recommends no more than 3 contacts a week or 10 a month for each account (calls, texts, emails and letters all count). No calls before 7:30am or after 9pm on weekdays, before 9am or after 9pm on weekends, and none on national public holidays.
You can tell a collector you only want to communicate in writing. This gives you time to think, get advice, and have a paper trail.
You can tell a collector not to contact you at your workplace. If you ask them to stop and give them another way to reach you, they should stop.
If you say the debt isn't yours, was never owed or is already paid, the guideline says collection should stop until they confirm it. You can ask for copies of the contract and statements, and they should send them without unreasonable delay.
Debts have a time limit (usually 6 years; 3 years in the Northern Territory), counted from when you fell behind, or from your last payment or written acknowledgement if that was later. After it passes, the creditor can't win in court if you rely on the time limit, though they may still contact you. While the time is still running, a payment or a written acknowledgement of the debt can restart it. In NSW, paying after the time limit has passed doesn't bring the debt back; other states may differ.
If a debt collector breaches these rules, you can complain for free to AFCA (banks and lenders), and report the collector to ASIC (credit and loan debts) or the ACCC (phone, utility and other debts); neither resolves individual disputes. For phone, internet, energy or water debts you can also complain for free to the TIO or your state's energy and water ombudsman. You can also complain to your state's fair trading body.
Tap any number to call directly. Tell them you're experiencing financial hardship.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for Financial Hardship Assistance (call, the webform at angleauto.com.au/financial-hardship, or email) and request reduced repayments, a repayment holiday, or support to sell or voluntary-surrender the vehicle; confirm the contract number starts with a number (Angle Auto Finance, regulated) not a letter (the separate, unregulated Angle Finance).
What to say: Ask for the Financial Wellbeing Assist team and lodge a hardship notice (ANZ Specialist Customer Connect is the dedicated family-violence/financial-abuse specialist team, not the general hardship line - see notes for its number).
Your right: Must respond within 21 days. If they refuse, you can escalate to AFCA for free.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the Financial Assist team and lodge a hardship notice; as a financial counsellor call the Financial Assist Represented team instead.
What to say: Ask for the Mortgage Help Centre (it handles all retail lending hardship - home loans, personal loans, cards, overdrafts - despite the name) and lodge a hardship notice.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the Customer Assistance Team (Financial Difficulty Assistance) for loans, or the dedicated credit card hardship line for BOQ credit cards, and lodge a hardship notice.
What to say: Ask for the hardship team and lodge a hardship application (phone, email customer.service@cashconverters.com or the online contact form), and ask for the review date.
Your right: Cash Converters must respond to hardship applications and work with you on appropriate relief. They have responsible lending obligations. If they failed to assess your capacity to repay at the time of lending, you may have grounds for a complaint to AFCA or ASIC.
What to say: Ask for the Financial Assist team (ongoing difficulty line 1300 720 814; ask separately for the short-term/missed-repayment line) and lodge a hardship notice for the affected loan or card.
Your right: CBA must consider your hardship request and respond, generally within about 21 days.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Call 1800 110 440 and select option 2 for the Financial Assistance Team and lodge a hardship notice.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the hardship team and lodge the online hardship help form (humm90) or the online Financial Hardship form (humm Classic), then call to confirm receipt.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Call 1300 349 166 and choose option 4 for the Financial Support Team (Financial Hardship Support program) and lodge a hardship notice.
Your right: Must genuinely consider your hardship request and respond within 21 days.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for Hardship Care and lodge the online Hardship Care application (about 20 minutes) so the 21-day clock starts in writing.
What to say: Ask for the financial hardship team and request the Financial Hardship Form (downloadable from the page) or email help@liberty.com.au with a statement of income and expenses.
What to say: Ask for the financial assistance team (Macquarie calls it "financial assistance", not hardship) and lodge a hardship notice; applying via Online Banking or the app is their preferred route.
Your right: Must respond to hardship notices within 21 days.
What to say: Call the Customer Assistance Team for hardship help. If you have an ME credit card, ask them which team handles it; if they say Bank of Queensland (BOQ), BOQ's hardship team is listed under BOQ.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for NAB Care (ongoing hardship) or NAB Assist (short-term payment help) and lodge a hardship notice.
Your right: Must assess your situation and respond, generally within about 21 days.
What to say: Ask for the Customer Assist team of the brand the loan is with (Newcastle Permanent on the main line, Greater Bank on the alternate line) and lodge a hardship notice.
What to say: Ask for the hardship team and request a hardship arrangement in writing; Nimble publishes a financial-position-for-hardship form to accompany it.
Your right: Nimble must respond to hardship notices, generally within about 21 days, and work with you on a revised arrangement if you cannot meet your current obligations. They must not engage in unconscionable conduct or apply unreasonable fees. If they refuse your request, escalate to AFCA.
What to say: Ask for financial hardship assistance for a car finance repayment (or email hardship@nissan.com.au) and request a hardship arrangement.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the Customer Assist team (Pepper Assist) and request a hardship arrangement, or lodge the online hardship form on the page.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the Financial Assistance team and request the Statement of Financial Position form; state the arrangement you want in the request.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the Customer Assist team (Financial Difficulty) and lodge a hardship notice.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Lodge the online hardship application via Toyota Finance Online (the page's only published channel) and ask the Customer Solutions Centre to confirm receipt and the 21-day date.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask for the hardship team on the dedicated hardship line and request a hardship arrangement under the National Credit Code (their FAQ tells customers they have this right).
What to say: Ask for Westpac Assist and lodge a hardship notice; as a financial counsellor go straight to the Customer Partnerships team instead.
Your right: Must respond to hardship applications within 21 days and offer genuine alternatives if they decline.
What to say: Ask for the financial hardship team and lodge a hardship notice for the affected loan or card; ask for the decision in writing.
What to say: Ask to be put through to the Staying Connected hardship program (NSW/QLD/SA/WA) and for a tailored payment plan on the account.
Your right: Under the National Energy Retail Law, AGL must not disconnect you while you're on a hardship plan and meeting your obligations.
What to say: Ask for the hardship team and 'additional payment assistance' (Alinta's tailored hardship tier) for a NSW residential account.
Your right: Must work with you on flexible payment options and not disconnect while you're on the hardship program.
What to say: Ask for the EnergyAssist team (financial counsellors can call the EnergyAssist line directly on the customer's behalf) and request the account be moved off standard credit and collection.
Your right: EnergyAustralia must assess your capacity to pay and set affordable repayment amounts.
What to say: Ask for the Power On program (Origin's hardship program for ACT/NSW/NT/QLD/SA/WA) and an affordable Power On repayment plan.
Your right: Origin must work with you on payment options, including direct Centrepay billing, and cannot disconnect you while you are keeping to an agreed payment plan (in NSW, QLD, SA, TAS and the ACT). Talking to the hardship team is not itself a protection — get the plan agreed.
What to say: Ask for the Customer Care team and entry to the Customer Care Program (Red's hardship program); short-term relief is the Payment Assist program.
Your right: Must work with you on a manageable payment arrangement.
What to say: Ask for the Hardship Program (1st Energy assesses within 5 business days and confirms acceptance within 10) and for EAPA vouchers to be applied to the account.
What to say: Ask for the specially trained hardship staff on the hardship line and entry to the Hardship Program (CovaU reviews the energy plan on entry).
What to say: Ask to be assessed for the Energy Assistance Program (Dodo's hardship program) and for a short- or long-term arrangement based on what the customer can afford.
What to say: Ask for the Bill Assist hardship program (ENGIE assesses applications within 2 business days) and a tailored long-term payment plan.
What to say: Ask for the Hardship Program (flexible arrangement based on debt, ongoing use and capacity to pay) and for EAPA vouchers to be applied.
What to say: Ask for hardship assistance under the Powershop Hardship Policy (Kogan Energy is retailed by Powershop Australia) and a payment arrangement on the outstanding balance.
What to say: Ask for the staff 'specifically trained to handle hardship enquiries' and a payment plan under the Payment Assistance Policy (NSW/QLD/SA/ACT/Bass Strait Islands).
What to say: Ask for the Be Supported hardship program and a tailored payment plan on the NSW account.
What to say: Ask for the OVO hardship program team and a payment plan; OVO will not change the plan or shorten the collection cycle without the customer's agreement.
What to say: Ask for the Payment Help team and access to Powershop's Hardship Program 'ON'.
What to say: Ask for Bill Assist (Sumo's hardship program) and a payment plan of smaller, more frequent instalments.
What to say: Ask for the Customer Assistance program (Tango's hardship program, open to customers with no arrears too) and a sustainable payment arrangement.
What to say: Ask for the Credit Services Team (or email credit@amaysim.com.au) and request a financial hardship arrangement.
What to say: Ask customer service to raise a Financial Hardship ticket to the Accounts Receivable team (or email hardship@aussiebb.com.au) and request a payment plan or other support under the Financial Hardship Policy.
What to say: Ask for the Payment Assistance team and request a payment arrangement over time, or email paymentassistance@team.belong.com.au.
What to say: Ask for payment assistance under Telstra's Payment Assistance Policy (Boost customers are eligible for all Telstra support options), or go via Telstra 13 22 00 and say 'payment assistance'.
What to say: Ask to lodge a Financial Hardship application (or use the web form at iinet.net.au/chat/financialhardship) and request a payment arrangement, plan downgrade, moratorium or late-fee waiver.
Your right: Must consider your hardship request and work with you on a payment arrangement.
What to say: Ask for the Advocacy Assist team and a Payment Assistance application (tailored plan, payment extension, product transfer, discount/credit/debt waiver or spend controls).
Your right: Must consider your hardship request and work with you on a payment arrangement before taking any restriction or disconnection action.
What to say: Call 13 22 00 and say 'payment assistance', and ask for a payment plan, Bill Assistance credit or pre-paid Top-Up under the Telstra Payment Assistance Policy.
Your right: Telstra must consider your hardship request and work with you on a payment arrangement, and must not disconnect while you're engaging in good faith.
What to say: Ask to lodge a Financial Hardship application (or use the web form at tpg.com.au/services/financialhardshipform) and request a payment arrangement, plan transfer, moratorium or late-fee waiver.
What to say: Ask for the Financial Hardship team (postpaid) or Payment Assistance (prepaid, dial 1555 from the handset) and request a payment arrangement, plan transfer, moratorium or late-fee waiver.
What to say: Ask for 'financial hardship help'. They can set up a payment plan, reduce your plan cost, or apply credits.
Your right: Must work with you on an affordable payment arrangement before disconnection.
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Last updated: . This guide is for general information only and is not financial or legal advice. For personalised help, call the National Debt Helpline on 1800 007 007.
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