Free Australian letter template
Hardship letter template
Explain that you cannot manage payments and ask to discuss assistance. Read the step-by-step guide first if you are unsure.
Before you send
- Check the recipient independently and read every line.
- Keep a copy and a record of when and how you sent it.
- Attach relevant copies yourself. The builder does not attach files.
- If the claim is old, get advice before paying or admitting it.
When to use this letter
Use a hardship request when you accept the debt but cannot manage the payments. Moneysmart recommends contacting the lender's hardship team and explaining the difficulty. Its collector guidance also describes discussing an affordable arrangement. If you disagree with the debt itself, read the proof or dispute guide before making a payment proposal.
The builder lets you explain a change in income or circumstances and ask about a pause, reduced payments or more time. Describe only what fits. Leave uncertain details out rather than predicting when your situation will improve. This is a request for consideration, not an approved arrangement.
What to attach
Moneysmart says a hardship team may ask about your income, major expenses and the reason you need assistance. Prepare these details using your own records. Our private budget worksheet can organise the arithmetic, but it does not choose a repayment amount.
The first letter can give a short explanation. You do not need to enter medical records or your life story into the builder. If the recipient asks for evidence, verify the destination and ask what information is relevant. You attach any chosen copies yourself; DebtReply has no document upload or sending service.
What happens after you send it
Read the response carefully. Check what would change, how long the proposal lasts, whether interest or fees are addressed, and when it will be reviewed. Ask for unclear terms to be explained in writing. Keep the response with your request so you can compare them.
The Moneysmart hardship guide suggests contacting the lender again if an arrangement becomes difficult. A financial counsellor can help you consider your options. If your budget leaves nothing for payments, seek that help rather than entering an amount just to finish the form.
Common questions
Will asking for hardship guarantee a pause?
No. The letter asks the recipient to consider assistance and explain its response. Read any proposed terms before agreeing.
Must I include medical details?
The builder allows a brief explanation of changed circumstances. It has no upload feature. Share only information you choose after checking the recipient.
Can I ask without choosing a payment amount?
Yes. The hardship builder supports a request for a pause or more time. Use free financial counselling if you need help assessing your budget.
Guidance checked .
Sources you can check
- Financial hardship ASIC Moneysmart · Checked 18 October 2026
- Dealing with debt collectors ASIC Moneysmart · Checked 18 October 2026
- Get debt under control ASIC Moneysmart · Checked 18 October 2026