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General information only: Contracts, notices and individual rights can differ. Contact the lender, insurer, financial counsellor or legal adviser as appropriate.
Quick answer
Contact the lender as soon as you know a repayment may be missed. For consumer credit, you can ask the lender to consider a hardship variation. Ignoring notices can add costs, damage the credit record and move the secured vehicle closer to repossession.
What to do now
- Contact the lender through its official hardship channel
- Explain what changed and what you can currently afford
- Keep notices, reference numbers and proposed arrangements
- Contact a free financial counsellor if the problem is broader than one payment
Ask for help before the arrears compound
A hardship variation changes contract terms or payment timing based on financial hardship; it is not a new loan approval. ASIC states that consumer credit contracts entered from March 2013 can be considered for hardship regardless of loan value.
Give the lender enough information to assess the request
Explain the cause, expected duration, current income and expenses and what payment is realistic. Do not agree to a catch-up plan that cannot be sustained. Ask how the arrangement affects interest, the term, arrears and credit reporting.
Use free independent help when needed
A financial counsellor can help assess debts and communicate with lenders. If a complaint cannot be resolved through the lender’s internal process, the Australian Financial Complaints Authority provides external dispute resolution for participating financial firms.
Why a short deferral can extend the debt
A lender agrees to defer repayments temporarily, but interest continues under the arrangement.
- The immediate scheduled payment is postponed.
- Interest and the unpaid balance are treated according to the agreed variation.
- Future repayments, the term or final amount may need to change.
Result: Hardship assistance can provide necessary breathing room, but the written arrangement should explain the later cost and repayment path.
Primary sources
Government and regulator sources checked on 8 August 2026:
- ASIC — hardship threshold and variations
- Moneysmart — repossessed car or goods
- ASIC Report 832 — review of car loans
Free help: National Debt Helpline.
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