Hardship Helper

Under Australian law, banks and lenders must genuinely consider a hardship request and respond, generally within about 21 days. Energy providers must run hardship programs and work with you on an affordable payment arrangement. Telcos must consider your request and work with you on a payment arrangement before disconnection. Debt collectors must follow strict contact rules. In every case they must consider and respond, but they are not obliged to say yes.

In most states, your energy provider cannot disconnect you while you're on a hardship program and meeting your agreed arrangement (the exact rules depend on where you live — Victoria, WA and the NT have their own equivalent protections). Even outside a hardship program, providers must follow strict disconnection procedures first, including working with you on payment options and giving proper notice, and disconnection is generally prohibited during extreme weather. If you're at risk of disconnection, call your provider's hardship line immediately and ask for their hardship program.

Under Australian law, you have the legal right to apply for a hardship variation on any regulated credit product: mortgages, credit cards, personal loans, and car loans. Your lender must respond, generally within about 21 days, and genuinely consider options like extending the loan term, reducing or pausing repayments, waiving fees, or restructuring the debt. They don't have to say yes, but they must consider your request. If they refuse, you can escalate to the Australian Financial Complaints Authority (AFCA) for free.

Debt collectors must identify themselves and verify the debt is yours. They cannot contact you more than 3 times per week or 10 times per month, and not before 7:30am or after 9pm on weekdays, not before 9am or after 9pm on weekends, and not at all on national public holidays. You can request written-only communication. You can dispute the debt and they must pause collection while verifying. 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. If a collector breaches these rules, complain to AFCA or the ACCC.

No. This tool provides general information based on Australian consumer protection law. It is not a substitute for legal advice, and laws can change. For complex situations, especially if you have a court date, are facing repossession, or are experiencing family violence, contact the National Debt Helpline on 1800 007 007, where a free financial counsellor can explain your options, or a community legal centre in your state.

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