How to ask your bank for hardship help

My Hardship Letter · Updated October 2026 · Based on Moneysmart, Financial Rights Legal Centre, Energy Made Easy and AFCA guidance

If you're falling behind on your home loan, credit card, personal loan or car loan, you have the right to ask your lender for help. Here's how it works, what to say, and what happens next.

You have the right to ask

If your loan or credit card is for personal or household use, the National Credit Code lets you ask your lender for a hardship variation (section 72). This is a change to your loan to help you through a tough time. Your lender must consider your request, and it must give you its decision in writing within 21 days.

Your lender doesn't have to agree to everything you ask for. But it can't simply ignore you, and if it says no, it must tell you why.

When to ask

As early as possible. You don't have to wait until you've missed a payment. If you can see trouble coming, such as reduced hours, an illness or a big unexpected bill, contact your lender now. Asking early gives you more options and helps you avoid extra fees.

What you can ask for

  • Pausing your repayments for a set time
  • Reducing your repayments for a set time
  • Extending your loan term so your repayments are lower
  • Waiving or freezing interest, default fees or late fees
  • Time to sell an asset, such as a car or property

Only ask for an arrangement you can actually keep up. A smaller amount you can manage is better than a bigger promise you can't.

What to include in your request

  1. Why you're in hardship. A sentence or two is enough, for example a job loss, illness, relationship breakdown or natural disaster. You don't need to tell your life story.
  2. What you're asking for, and for how long.
  3. What you can afford to pay right now, even if it's nothing.
  4. Your plan to get back on track, such as when you expect your situation to improve.

Putting your request in writing gives you a clear record of when you asked. Search "[your lender] hardship" to find their hardship team's email or online form. You can also call and say: "I'm experiencing financial hardship and I'd like to apply for assistance."

What happens next

  • Keep paying what you can, even if it's less than usual.
  • Watch for a decision within 21 days. If your lender asks for more information about your income and expenses, send it quickly.
  • If they say yes, get it in writing. It should show your new repayment amount and how often, any interest or fees, the start and end dates, and what happens when the arrangement ends.
  • If they say no or don't reply, see our guide: What to do if your hardship request is rejected.

Will it affect my credit score?

According to Moneysmart, a hardship arrangement does not affect your credit score. It will show on your credit report, and that listing is removed after 12 months. Late payments that were listed before you asked for help can still stay on your report, which is another good reason to ask early.

What about business loans?

The National Credit Code covers personal and household credit, not business loans. You can still ask for help, and many lenders follow a code of practice. The free Small Business Debt Helpline (1800 413 828) can help.

Ready to ask for help? Our free tool writes your hardship letter in about 3 minutes, plus a follow-up letter and a step-by-step plan.
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