Australian debt guide
What to do if you cannot afford to pay a debt
By DebtReply · Sources checked
If you accept the debt but cannot manage repayments, ask about hardship assistance. Moneysmart recommends contacting the lender’s hardship team and considering what payments are manageable. Prepare a short explanation of what changed and your current budget. Free financial counselling can help if you are unsure where to start.
What is a hardship request?
Moneysmart describes assistance that changes repayments or sets up a plan. A request starts a discussion; it does not mean an arrangement has been accepted. DebtReply lets you ask about a pause, reduced payments or more time, then review the wording before sending.
What information should I prepare?
Keep the first explanation brief: what changed, whether you expect it to last and what you want to discuss. Gather figures for income, major expenses and other commitments separately. You do not need to enter detailed medical records into this builder. If more information is requested, verify the recipient and ask why it is needed.
How can I think about payments?
The Moneysmart debt-management guide suggests comparing money coming in with money going out. Our budget worksheet helps organise that arithmetic. Its result is not a recommended offer; missing costs and irregular bills can change the picture.
What can I do next?
- Identify the organisation’s hardship contact.
- Prepare a short explanation of the change.
- Check your income and commitments.
- Use the letter to ask for a discussion and written terms.
- Read the response carefully and seek free help if the proposal is unclear or unmanageable.
Put your next step into words
Use a free starting-point letter, then check that every detail fits your situation.
Write the letter →Common questions
Will my request automatically be accepted?
No. The letter asks the organisation to consider assistance and explain its response.
Can I explain a change without medical details?
The builder allows a brief explanation. Only include information you choose to share.
What if I have nothing left after essentials?
The worksheet is a starting point for a conversation. Contact a free financial counsellor rather than treating a number as a repayment instruction.
Sources you can check
- Financial hardship ↗ASIC Moneysmart · Checked 26 September 2026
- Get debt under control ↗ASIC Moneysmart · Checked 26 September 2026
This guide explains a process. It has not been reviewed as advice for your situation. How we use sources.