With rising interest rates and the cost of living continuing to put pressure on household budgets, many Australians are feeling overwhelmed.
If you're struggling to keep up with repayments, it's important to know that you’re not alone and there are options available to help.
A good starting point is understanding how your credit reporting works. The office of the Australian Information Commissioner (OAIC), the government regulator responsible for Australia's credit reporting system - explains that - a credit report is a summary of your credit accounts and how you have managed them over time. It includes things like your loans, credit cards, Buy Now Pay Later accounts, and your repayment history.
Credit reporting bodies use this information to create a credit score, which is a number that reflects their assessment of your creditworthiness. Lenders may consider this information when assessing applications for credit.
To help you feel more confident about your options, here are five common myths about financial hardship assistance and the facts you need to know.
Myth 1: Asking for hardship help means you’ve failed financially
Many people feel embarrassed about speaking to their lender when they're struggling with repayments. But financial hardship can happen to anyone.
Unexpected events such as job loss, illness, natural disasters, relationship breakdowns or rising living costs can affect even the most careful planners.
Lenders understand this. In fact, lenders have established hardship programs designed specifically to support customers through temporary financial difficulty.
Reaching out early isn't a sign of failure, it's a proactive step toward managing your situation and finding a workable solution.
Myth 2: If you ask for help, your credit score will drop
This is one of the most common misconceptions. Under Australian law, financial hardship information cannot be used by credit reporting bodies to calculate your credit score.
A hardship arrangement may appear on your credit report, but it does not lower your credit score.
What does matter for your credit report is whether repayments are missed. A hardship arrangement can actually help prevent repeated missed payments from being recorded.
Myth 3: It's better to miss a payment than ask for hardship
Some people delay contacting their lender because they think they can "catch up later."
But missed payments can stay on your credit report and may affect future credit applications.
A financial hardship arrangement can help avoid this situation. When an arrangement is in place, your repayment history reflects whether you meet your obligations as agreed to with your hardship arrangement.
That means seeking help early can help protect your credit report and reduce financial stress.
Myth 4: A hardship arrangement will stop you from getting credit in the future
Having hardship information on your credit report does not automatically prevent you from accessing credit later.
If you apply for credit in the future, a lender may simply ask questions about your current circumstances to understand whether the hardship situation has passed and whether you can comfortably afford repayments.
It's also important to know that hardship information remains on your credit report for 12 months after the final repayment under the arrangement, after which it is no longer visible.
Myth 5: You should wait until things get really bad before asking for help
Many people wait until they're already behind on payments before contacting their lender.
But the earlier you reach out, the more options may be available to you.
For, example, lenders may offer temporary payment pauses, smaller repayments or other tailored arrangements depending on your circumstances.
Seeking help early can help ease your financial pressure, help avoid fees or negative repayment history, and give you breathing room while you get back on track.
We're here to help
Queensland Country Bank offers financial hardship assistance, which is a temporary arrangement designed to adjust your repayments for a period of time. This could give you some breathing room while you work through a challenging situation.
Hardship assistance is assessed on a case‑by‑case basis, and the type of support available will depend on your circumstances. If you'd like to understand more about how we can support you during a tough time, read more about our financial hardship options.
We know it can feel overwhelming, but you don't have to navigate it alone. Visit your local branch or call our Contact Centre to chat with a member of our team - we’re here to listen and help you explore the options available to you.