I can't afford to pay a debt
Falling behind on a debt is stressful, but you have options and free help is available.
This guide helps you
- Understand that being unable to pay is common and fixable
- Take the most useful first actions today
- Know that you can ask a creditor for help
- Find free, confidential financial counselling
- Recognise when to reach out for emotional support too
6 min
You're not alone
Money trouble can happen to anyone — through illness, job loss, a relationship breakdown, rising costs or simply too many bills landing at once. If you cannot afford to pay a debt right now, you have not failed, and you are not the only one. Many people work through this every year and come out the other side.
This page is general information, not financial advice. The single most helpful step you can take is to talk to a free financial counsellor who can look at your whole situation. Call the National Debt Helpline on 1800 007 007 — it is free, independent and confidential.
Your first steps
Try not to panic, and try not to ignore the debt — problems usually get easier to fix the earlier you act. A few calm steps go a long way:
- Open your mail and messages. Knowing exactly what you owe and to whom puts you back in control.
- Don't promise money you don't have. It is better to offer a realistic amount than to agree to something you can't keep.
- Write down your debts — the creditor, the amount, and the due date for each.
- Reach out for free help before making decisions.
Step by step
- Work out what you can realistically afford each week after rent, food and essentials.
- Contact each creditor and tell them you are in financial difficulty. You can ask for a payment plan, more time, or a pause — see our glossary for terms like hardship and payment arrangement.
- Ask about financial hardship. Many lenders and utilities have hardship teams who can help.
- Get free financial counselling so you have someone independent in your corner.
Free help available
You never have to deal with this alone or pay for help. Free support includes:
- National Debt Helpline — 1800 007 007. Free, independent financial counsellors.
- Ombudsman and complaint schemes if a creditor treats you unfairly — find them in our directory of bodies.
If the stress is affecting how you feel, Lifeline on 13 11 14 or Beyond Blue on 1300 22 4636 are there any time.
Key takeaways
- Being unable to pay is common and fixable — acting early helps most
- You can ask any creditor for hardship help, more time, or a payment plan
- Free financial counselling is available on 1800 007 007
Frequently asked questions
Will I get in trouble for telling a creditor I can't pay?
No. Letting a creditor know early is sensible and often opens the door to hardship help. Many businesses would rather agree to a realistic arrangement than chase a debt you can't pay.
Does financial counselling cost money?
No. Financial counselling through the National Debt Helpline (1800 007 007) is free, independent and confidential. Be cautious of paid 'debt management' firms that charge fees for similar help.
What if I can only afford a very small amount?
That's still worth offering. A small, regular payment you can actually keep is usually better received than a large promise you can't honour. A financial counsellor can help you work out a fair figure.
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.