Behind on a bill? You can ask for time, by right
Energy retailers, banks, councils and phone companies all have hardship processes. Asking early costs nothing and stops the expensive part: disconnection, default listings and debt collectors.
Free
financial counselling and debt help, including a service that negotiates a repayment plan on your behalf
What this is
Hardship arrangements are not a favour. Energy retailers, banks and telcos operate under rules that require them to work with customers who are struggling, and the earlier the contact the more options exist. The reason people do not use them is that asking feels like an admission, so the call gets put off until the debt has grown, a default has been listed or the power is off. All three of those are harder and more expensive to undo than the conversation would have been.
Does it apply to you?
- Anyone who knows a bill is going to be late
- Anyone already being contacted by a debt collector
- Anyone juggling several debts at once, where a financial counsellor is the right first call
How to do it
- Contact the provider before the due date, not after. Say the words 'financial hardship' and ask what arrangements they offer.
- Ask for the arrangement in writing, and ask them to pause any late fees, interest or disconnection while it is in place.
- For council rates, ask about writing off interest on overdue amounts and about reductions where a revaluation caused the hardship.
- If you are dealing with several debts, ring the National Debt Helpline on 1800 007 007. A financial counsellor is free and independent.
Where people lose the money
Waiting until after the disconnection notice.
Contact them before the due date. Options narrow sharply once the account is in arrears or disconnected.
Paying a company to negotiate for you.
Financial counselling through the National Debt Helpline is free and independent. Way Forward can arrange a repayment plan at no cost.
Agreeing to an amount you cannot sustain.
A plan that fails is worse than one you negotiated honestly. Offer what you can actually keep paying.
Questions
Will asking for hardship hurt my credit file?
A hardship arrangement itself is handled differently from a default. What damages a credit file is a missed payment that goes unaddressed and becomes a default listing, which is what asking early is meant to prevent.
Is financial counselling really free?
Yes. The National Debt Helpline on 1800 007 007 is free, independent and confidential. It is not a debt agreement company and it does not sell you a product.
Can they still disconnect my power?
Energy retailers have obligations to customers in hardship and disconnection is meant to be a last resort. Being in a hardship arrangement and keeping to it is the protection.
What about council rates?
Councils can write off interest on overdue rates and, in some cases, reduce rates where a land revaluation caused hardship. Ask your council directly.
Where these numbers come from
- Moneysmart (ASIC), Problems paying your bills and fines · read 2026-09-23
Last gone over 2026-09-23. Figures change; the link above is always the current one.
Published by Income Lab, Melbourne. Responsible for this page: Jarred Krowitz.