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Australians reminded financial hardship support is available as repayment pressures rise

Pure Public Relations

Arca urges borrowers struggling with rising repayments to contact their lenders early and explore available financial hardship assistance.

Thursday 29 October 2026: With the Reserve Bank of Australia (RBA) set to announce its next interest rate decision on Tuesday 3 November, Australians already struggling with mortgage and other credit repayments are being urged to contact their lenders and explore the financial hardship assistance available to them.

Arca, the peak industry body for consumer credit, is reminding borrowers that lenders have financial hardship assistance programs in place to support customers experiencing financial difficulty, and that they don't need to wait until they've missed a repayment to ask for help.

Recent research commissioned by CreditSmart, Arca's consumer education initiative, found that 43% of Australians had experienced financial stress in the past 12 months. Of those, 65% had taken steps to improve their financial situation, including reducing spending and comparing prices, while only 9% had reached out to their lenders for support. The findings serve as an important reminder that people don't have to navigate financial difficulties alone, with support available to those who need it.

Elsa Markula, CEO of Arca, said another interest rate increase would be a significant challenge for households already struggling with rising living costs.

"For households already stretching every dollar to cover their mortgage, groceries, energy bills and other essentials, a rate increase will add further pressure to already tight budgets," she said.

"We want Australians to know that if they're struggling to meet their repayments, help is available. Lenders have financial hardship assistance programs in place to support customers through challenging financial circumstances.

"You don't have to wait until you've missed a payment or reached breaking point to ask for help. The most important thing is to start the conversation with your lender as early as possible."

Financial hardship assistance is designed to help borrowers experiencing difficulty meeting their credit repayments, whether due to rising living costs, changes in income, illness, unexpected expenses or other circumstances affecting their ability to pay.

Support options vary depending on individual circumstances but may include reduced repayments, payment deferrals, temporary pauses on repayments or other adjustments to help borrowers manage their financial commitments.

Markula said financial hardship doesn't necessarily stem from a major life event, and that rising household expenses can gradually make existing repayments unaffordable.

"Financial hardship can affect anyone. For some households, it's not a sudden change in circumstances but the cumulative impact of rising expenses that makes it harder to keep up," she said.

"If another rate increase is announced on Tuesday and you're worried about how you're going to make your next repayment, contact your lender and explain your situation. They can work with you to understand your circumstances and explore what assistance may be available.

"Seeking help early can make a meaningful difference and give you more options to manage your financial situation."

Importantly, Arca is also reassuring Australians that accessing financial hardship assistance does not negatively affect their credit score.

While a financial hardship arrangement may be recorded on a credit report, hardship information cannot be used to calculate a person's credit score. Repayment history information during an arrangement reflects whether the borrower has met the agreed hardship repayment obligations.

Arca is encouraging Australians experiencing financial pressure to take the following steps:

• Contact your lender early: Don't wait until you've missed a repayment. If you're concerned about meeting your financial commitments, contact your lender and ask about financial hardship assistance.

• Explain your circumstances: Let your lender know what's changed and why you're finding repayments difficult. This will help them understand your situation and identify suitable support options.

• Ask what assistance is available: Depending on your circumstances, your lender may be able to offer reduced repayments, payment deferrals, temporary repayment pauses or other adjustments.

• Understand how hardship assistance affects your credit report: Entering into a financial hardship arrangement does not negatively affect your credit score. You can learn more about financial hardship reporting through CreditSmart.

• Seek reliable information: Visit www.creditsmart.org.au for free, unbiased information about financial hardship assistance and credit reporting.

"There's no shame in needing support, particularly when household budgets are under pressure. Financial hardship assistance exists to help Australians navigate difficult periods, and people should feel confident asking for it when they need it," Markula said.

For more information about financial hardship assistance, how it works and what it means for credit reporting, visit www.creditsmart.org.au. An initiative of Arca, CreditSmart provides free, unbiased information to help Australians understand their credit rights and options.

About us:

About Arca:

Arca is the only industry association dedicated solely to consumer credit. The organisation brings together Australia's leading credit providers and reporting bodies to improve data protection and make credit more visible, accessible, and easily understood. Through advocacy, governance, education, and engagement, Arca shapes best practices and ensures Australia's credit system is robust, respected and trusted.

About CreditSmart:

CreditSmart is Australia's trusted source for unbiased credit reporting information, designed to simplify credit reporting and help consumers take control of their credit health. Developed by industry experts, CreditSmart offers clear, accessible and factual guidance on credit reporting, credit scores, financial hardship support and identity protection.

Contact details:

Allie Cracknell
Senior Publicist, Pure Public Relations
[email protected]