Question 1

What do I do if I can't pay my credit card in Australia?

Accepted Answer

Contact your bank's hardship team and use the words "financial hardship application". Every licensed lender is legally required to consider your application and respond within 21 days. Typical outcomes include a repayment pause, reduced minimum repayments, or a temporary interest-only arrangement — none of which automatically affect your credit file.

Question 2

Can I get my debt written off in Australia?

Accepted Answer

In limited circumstances, yes. Lenders may agree to a partial or full debt waiver as part of a hardship arrangement, particularly for severe or long-term hardship. More commonly, debts can be reduced through negotiated settlements. Way Forward (wayforward.org.au) is a free not-for-profit that negotiates directly with creditors and sometimes achieves significant reductions.

Question 3

What is a financial hardship arrangement?

Accepted Answer

A financial hardship arrangement is a formal agreement between you and a lender to temporarily change your repayment terms due to circumstances outside your control — such as illness, job loss, or a relationship breakdown. Common arrangements include payment pauses, reduced repayments, interest-only periods, and fee waivers. Lenders are required by law to consider these requests.

Question 4

Will hardship assistance affect my credit file?

Accepted Answer

Applying for hardship does not automatically affect your credit file. During an approved arrangement, most lenders will not report missed repayments. However, any repayments missed before the arrangement was approved may already be listed. Defaults that occurred before you applied are not removed by a hardship arrangement — but future repayments during the arrangement should be protected.

Question 5

Who can negotiate with creditors on my behalf for free?

Accepted Answer

Way Forward (1300 045 502) is a free not-for-profit debt management service that negotiates directly with creditors on your behalf — at no cost. The National Debt Helpline (1800 007 007) provides free financial counselling and can advise you before you approach lenders. Both services are independent and have no financial incentive to recommend any particular product.

Question 6

What is the National Debt Helpline?

Accepted Answer

The National Debt Helpline (1800 007 007) is a free, confidential phone service staffed by professional financial counsellors. It operates Monday to Friday 9:30am–4:30pm. Counsellors can help you understand your options, prepare for conversations with lenders, and refer you to specialist services if needed. They don't sell anything and have no conflict of interest.

Question 7

How do I apply for an ATO payment plan?

Accepted Answer

For debts under $100,000, you can set up a payment plan online directly through myGov without needing to call. For larger debts or to discuss interest remission, call the ATO on 13 11 42. The ATO is generally flexible — they would rather receive payments over time than pursue enforcement. Call early before the debt grows with the General Interest Charge (GIC).

Question 8

What can debt collectors legally do in Australia?

Accepted Answer

Debt collectors in Australia must comply with the ACCC/ASIC Debt Collection Guideline. They cannot contact you at unreasonable hours, use harassment or coercion, misrepresent the amount owed, or threaten action they cannot legally take. If you have lodged a hardship application, collection activity should pause while it is assessed. Report any harassment to AFCA (afca.org.au) or the ACCC.

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Questions Australians ask about financial hardship