What to do first
- 1
Contact your lender's hardship team
Search 'hardship' on the lender's website, or call, email or use chat. You don't need to use any special words.
- 2
Explain what's changed
For example, reduced hours, illness, a relationship breakdown or an unexpected cost. Moneysmart notes lenders won't ask for your life story.
- 3
Say what you can afford
Use a budget to work out a realistic repayment, even if it's smaller than the current one.
- 4
Keep records
Note dates, names and what was agreed, and keep copies of emails and letters.
- 5
Keep paying what you can
If you can't keep to an arrangement, tell the lender straight away and negotiate a new one.
What your lender must do
Consider your request
When you ask for help, your lender must consider you for hardship assistance.
Respond in time
A lender generally must respond in writing within 21 days of receiving your hardship request. If it asks for more information, the 21 days runs from when you provide it.
Give reasons
If your request is refused, the lender must give reasons. You can then make a complaint.
Hold off on a default listing
A default generally can't be listed while your hardship request is being considered, or until 14 days after you're told it was refused.
Options a lender may offer
- Reduced repayments or a changed payment date for a set period.
- Moving a payment date to line up with your pay.
- Extending the term so each repayment is smaller.
- A longer-term change to the contract, known as a hardship variation.
- A plan to catch up on arrears over time.
A hardship arrangement doesn't affect your credit score. Your report shows the months it's in place, and that information is removed after 12 months. If you stick to the arrangement, you're shown as up to date.
Free help and complaints
| Service | How it can help | Contact |
|---|---|---|
| National Debt Helpline | Free, confidential financial counselling | 1800 007 007 · ndh.org.au |
| Mob Strong Debt Help | Free legal advice about money for Aboriginal and Torres Strait Islander peoples | 1800 808 488 |
| Australian Financial Complaints Authority | Free, independent complaints when you can't resolve things with the lender, including refused hardship requests | 1800 931 678 · afca.org.au |
| Beyond Blue | Support if money stress is affecting your wellbeing | 1300 22 46 36 |
Evercrest Finance publishes its hardship and complaints information on its support page. You don't need to log in or miss a payment to ask for help.
Hardship questions
Should I wait until I've missed a payment to ask for hardship help?
No. You can ask before a payment is due, and asking early usually gives you and your lender more options.
How long does a lender have to respond to a hardship request?
Generally 21 days from receiving your request. If the lender asks for more information, the 21 days runs from when you provide it.
What if my hardship request is refused?
Ask for the reasons in writing. You can complain to the lender, and if that doesn't resolve it, take your complaint to AFCA, which is free.
What happens if I miss a loan payment?
A payment more than 14 days late can be recorded in your repayment history, and fees may apply under your contract. If $150 or more is at least 60 days overdue, a lender may list a default after sending the required notices.
Should I take out another loan to make a repayment?
Borrowing to repay another loan can deepen the problem. Talk to your lender about hardship and call the National Debt Helpline on 1800 007 007 first.