When you can’t keep up with repayments or bills, you’re not without options. Lenders and service providers often have hardship processes—and there are free services to help you use them.
What is a hardship variation?
A hardship variation is a temporary change to your loan or contract—for example, lower repayments for a few months, a pause on repayments, or extended terms. You have to ask for it; the lender will want to see that you’re in genuine hardship and may ask for income and expense details.
Who do I ask?
Contact each creditor: your bank, card provider, utility company, or telco. Ask for their “hardship” or “financial difficulty” team. Don’t wait until you’re in default—asking early can protect your credit record and give you breathing room.
What about energy and other bills?
Many providers offer payment plans, extensions, or relief grants. There may also be government or community assistance for energy, rent, or healthcare. A financial counsellor can help you find and apply for these.
Debt agreements and bankruptcy
In serious cases, formal options like a debt agreement or bankruptcy can provide a legal way to deal with debt you can’t repay. They have long-term consequences, so they should only be considered after talking to a free financial counsellor or legal service.