Can I get help if I'm struggling with debt?

In Plain English

Yes, there are options available if you're struggling with debt. Here's a breakdown based on the provided information:

  • For credit debts: If you're having trouble making repayments on a credit contract (like a loan or credit card), immediately contact your credit provider. You have legal rights to request changes to your contract if you're experiencing hardship due to illness, unemployment, or another valid reason. You can ask to extend the loan term, reduce or delay payments. The credit provider must respond to your request within 21 days. If they refuse, you can seek a review of their decision from the Australian Financial Complaints Authority (AFCA).
  • For telecommunications debts: If you're struggling to pay your phone or internet bills, contact your provider as soon as possible. They are required to offer a range of options to help you, such as payment plans, and must consider your individual circumstances when creating a plan.
  • For HELP debts: Depending on your profession and location, you may be eligible for a reduction in your accumulated HELP debt.
  • For small business debts: If you are a small business owner, you can contact the Small Business Debt Helpline Program for financial counselling services.
  • General financial difficulties: You can contact a financial counsellor on 1800 007 007 for free and independent advice on managing your debts.

Detailed Explanation

The legislative context provides several avenues for individuals struggling with debt:

  • National Consumer Credit Protection Act 2009](https://www.legislation.gov.au/C2009A00134/latest/text): This Act focuses on credit contracts and provides protections for consumers facing financial hardship.
    • Section 116(2) and 119(2) outline the requirements for licensees to assess whether a credit contract is unsuitable for a consumer. This includes situations where the consumer is unable to comply with financial obligations or could only comply with substantial hardship.
    • Form 12, referenced in the National Consumer Credit Protection Regulations 2010, details a debtor's rights after default. It emphasizes the importance of contacting the credit provider immediately to discuss the situation and potentially vary the contract (regulation 86 of the Regulations).
    • Form 11A and 18, also referenced in the National Consumer Credit Protection Regulations 2010, are direct debit default notices that highlight the need to contact the credit provider immediately if direct debit arrangements have failed. They also mention the option to seek a review from the AFCA scheme if the credit provider refuses to change the contract.
  • Telecommunications (Financial Hardship) Industry Standard 2024](https://www.legislation.gov.au/F2024L00133/latest/text): This standard mandates that telecommunications providers offer assistance to customers experiencing financial hardship.
    • Section 14 requires providers to identify financial hardship customers early and communicate with them about their payment assistance policy.
    • Section 15 details the minimum requirements for communicating with customers, including discussing options for assistance and providing contact details for authorized personnel.
    • Section 16 outlines eligibility criteria for financial hardship assistance.
  • Higher Education Support Act 2003](https://www.legislation.gov.au/C2004A01234/latest/text): This Act deals with HELP debts.
    • Division 142 and 144 outline special measures for location-preferred HELP debtors, such as teachers and health practitioners, potentially leading to a reduction in their accumulated HELP debt.
    • Section 144-10 allows the Secretary to determine that a person's accumulated HELP debt for a course of study be reduced.
  • Industry Research and Development (Small Business Debt Helpline Program) Instrument 2022](https://www.legislation.gov.au/F2022L00333/latest/text): This instrument prescribes the Small Business Debt Helpline Program, which provides funding for a national small business financial counselling service.
  • A New Tax System (Family Assistance) (Administration) Act 1999](https://www.legislation.gov.au/C2004A00491/latest/text): While this Act primarily deals with family assistance payments, it also includes provisions for debt recovery and non-recovery.
    • Section 91 allows the Secretary to enter into arrangements for payment of debt by installments.
    • Section 95 allows the Secretary to write off a debt under certain circumstances, such as irrecoverability or the debtor's lack of capacity to repay.
  • National Disability Insurance Scheme Act 2013](https://www.legislation.gov.au/C2013A00020/latest/text): This Act allows the CEO to enter into an arrangement with a person under which the person is to pay a debt, owed by the person to the Agency under this Act, or the outstanding amount of such a debt, in a way set out in the arrangement (s184).