Dealing with debt after losing my job
Losing your income suddenly is frightening — but quick, calm steps can protect you.
This guide helps you
- Steady your finances after a sudden income drop
- Protect essentials and priority debts
- Tell creditors early and ask for help
- Explore support you may be entitled to
- Find free help and emotional support
6 min
You're not alone
Losing a job — whether through redundancy, illness or circumstances beyond your control — can turn your finances upside down overnight. It's a lot to carry, and it's completely understandable to feel anxious. Acting early gives you the best chance to steady things.
This is general information, not financial advice. A free financial counsellor can help you plan for the change in income — National Debt Helpline 1800 007 007.
Your first steps
In the early days, focus on the essentials:
- Work out what money you have coming in now, including any final pay or entitlements.
- Make sure rent, food and power are covered first.
- List your debts so you know what's due and when.
Step by step
- Build a new budget based on your reduced income.
- Contact creditors early and ask about hardship, pauses or smaller payments while you look for work.
- Check what support you may be entitled to, such as Centrelink payments or hardship provisions on loans and utilities.
- Review any insurance that might cover repayments during unemployment.
- Get free financial counselling to make a plan.
You can look up terms like hardship and redundancy in our glossary.
Free help available
- National Debt Helpline — 1800 007 007 for free, confidential financial counselling.
- For emotional support during a tough time, Lifeline 13 11 14 or Beyond Blue 1300 22 4636.
You don't have to work through this alone.
Key takeaways
- Act early — tell creditors before payments are missed
- Protect essentials and check what support you may be entitled to
- Free financial counselling and emotional support are available on 1800 007 007 and 13 11 14
Frequently asked questions
Should I tell my creditors I've lost my job?
Yes, as early as you can. Letting creditors know opens the door to hardship help, pauses or smaller payments. A free financial counsellor (1800 007 007) can help you have these conversations.
Might my loan repayments be covered by insurance?
Sometimes. Some loans and credit cards include insurance that may cover repayments during unemployment. Check your policies, and a financial counsellor can help you understand what applies.
What support might I be entitled to?
You may be eligible for Centrelink payments and hardship provisions on loans and utilities. A free financial counsellor can help you identify support and prioritise your essentials.
This is general information, not legal or financial advice. Your situation is unique and rules can vary by state and over time — for advice on your circumstances, speak to a free financial counsellor (National Debt Helpline 1800 007 007) or get legal help.
Know your options, know your rights
A free, plain-English guide to dealing with debt in Australia — and the people who can help.