Debt in Australia: How to Prioritize Repayments and Find Help | November 8, 2026

Verified November 8, 2026, at 9:11 p.m. UTC.

If debt repayments are competing with food, rent, or essential bills, start by protecting the necessities and contacting the businesses you owe. In Australia, lenders and other providers may offer hardship arrangements, while the National Debt Helpline provides free, confidential financial counseling at 1800 007 007.

The right payment order depends on the consequences of missing each bill. Housing, utilities, and transport needed for essential travel generally deserve early attention, but a court notice or enforcement action can make another debt urgent. You do not have to work out the order alone.

Destaques

• Budget for food, medication, housing, and essential services before promising repayments you cannot afford.
• Contact lenders and service providers early to request a hardship arrangement or payment plan.
• Get legal advice promptly if you receive court documents or a bankruptcy notice.
• Call the National Debt Helpline on 1800 007 007 for free financial counseling.

Which debts and bills should you pay first in Australia?

Start with a realistic picture of the money coming in and what your household needs to live. Set aside enough for essentials such as food, medication, and necessary transport. Then consider the consequences and deadlines attached to each bill.

The National Debt Helpline’s guide to prioritizing debts identifies rent or mortgage payments, council rates or body corporate fees, energy and water, and payments on a car needed for work or essential travel as high priorities. Phone and internet service may also be essential to your circumstances.

Missing these payments can put your housing, services, or access to work at risk. A credit card with a high interest rate may feel urgent, but paying it at the expense of rent or groceries can create a more immediate problem. Contact every creditor you cannot pay, including those lower on your list.

Some debts need faster attention because of legal action. If you receive a statement of claim, court documents, a bankruptcy notice, or a notice that a creditor is enforcing a judgment, seek legal advice immediately. Deadlines and options depend on the document and your circumstances; do not assume a hardship request alone stops a court deadline.

How can you make a repayment plan you can afford?

Write down each creditor, balance, interest rate, minimum payment, due date, and any overdue amount. Note whether a loan is secured against your home or car and whether you have received a default or legal notice. Compare the total with your income after essential living costs.

If there is enough left to meet all required payments, you can direct any extra money toward one debt. Paying extra toward the highest-interest debt can reduce interest costs; paying off a smaller balance first may help you see progress. Keep making required payments on the others, and check for fees or restrictions on extra repayments.

If there is not enough for minimum payments, do not build a plan around money you do not have. Ask creditors for hardship assistance and speak with a financial counselor. For example, someone who has lost work hours might ask for reduced repayments while they look for more work, then review the arrangement when their income changes. Whether a lender agrees, and what it offers, will depend on the circumstances.

How do you ask a lender for financial hardship assistance?

Contact the lender’s hardship team as soon as possible, ideally before a payment is missed. Explain what changed, whether the difficulty is likely to be temporary, and what you can realistically afford. You can ask about reduced repayments, a temporary pause, an extension, or another arrangement suited to your situation.

Before agreeing, ask how long the arrangement will last, whether interest and fees will continue, what the total cost may be, and how the arrangement may appear in your credit reporting. Request the terms in writing and keep copies of messages, dates, and the names of people you speak with. If your situation changes, contact the lender again rather than waiting for the arrangement to fail.

Electricity, gas, water, phone, and internet providers can also discuss payment difficulties. Ask about hardship programs, affordable installments, extensions, and any concessions or relief grants available where you live. Moneysmart’s debt guide outlines practical steps for dealing with bills and repayment plans.

Where can Australians get free debt help?

Call the National Debt Helpline on 1800 007 007 to speak with a financial counselor. Counseling is free and confidential. A counselor can help assess your budget, explain options, negotiate with creditors, and refer you for legal or other support. The helpline also offers online chat; check its website for current availability.

Aboriginal and Torres Strait Islander people can contact Mob Strong Debt Help on 1800 808 488 for free help with money matters. If you need an interpreter, Services Australia advises calling the Translating and Interpreting Service on 131 450 and asking to be connected.

If you need food, housing, or help with a bill now, Moneysmart lists emergency relief and housing services. Depending on your situation, Services Australia may provide an eligible person with a Crisis Payment or an advance. An advance is part of a future payment paid early, not extra income.

What if a hardship request is refused?

Ask the provider to explain its decision and use its complaints process. If a bank or another financial firm refuses your request, does not respond, or you cannot agree on an arrangement, the Australian Financial Complaints Authority may be able to consider a free complaint. AFCA can be reached on 1800 931 678.

Keep making any payments you can genuinely afford while seeking advice, and tell your counselor about collection or legal action. Avoid signing up for a paid debt-management service or consolidating debts until you understand the fees, total repayment, and consequences. Borrowing more could make the position worse if the new payment is unaffordable.

Frequently asked questions

Is financial counseling free in Australia?

Yes. Financial counseling through nonprofit community services is free and confidential. Call the National Debt Helpline on 1800 007 007 to find help.

Should I pay my credit card before my rent?

Generally, protect housing and essential living costs first, then contact the card provider about hardship assistance. Get individualized advice if legal action or other urgent circumstances change the priorities.

Can a hardship arrangement erase my debt?

A hardship arrangement usually changes how or when you pay; it does not automatically erase what you owe. Ask the provider to explain the balance, interest, fees, and written terms.