Overcoming Financial Hardship

Life is full of unexpected twists and turns, and sometimes these can take a toll on our finances. If you're finding it tough to meet your mortgage, loan or card payments, you might be experiencing what's known as financial hardship. In this blog, we'll walk you through what financial hardship means and provide insights into the help that's available for those facing challenging financial situations.

Understanding Financial Hardship

Financial hardship occurs when life throws curveballs that make it difficult to keep up with your financial commitments. It could be due to job loss, illness, divorce, or other unexpected events that impact your ability to make payments. We understand that this can be an incredibly stressful time.

Recognising the Signs

If you're uncertain whether you're facing financial hardship, here are some signs to look out for:

1.    Missed Payments: Regularly missing your mortgage, loan or card payments or only paying a portion of the amount due.

2.    Communication Difficulties: Struggling to talk to your lender about your financial challenges.

3.    Increased Debt: Accumulating additional debts to cover living expenses or debt repayments.

4.    Reduced Income: Experiencing a decrease in income due to job loss, reduced work hours, or unexpected expenses.

Getting Assistance

If you find yourself in a situation where making mortgage payments is becoming increasingly difficult, don't panic. There are various avenues to explore for assistance:

1.    Contact Your Lender: Reach out to your lender as soon as possible. Most lenders have dedicated hardship teams that can discuss options like temporary payment arrangements, loan modifications, or repayment plans.

2.    Government Assistance Programs: In Australia, there are government initiatives designed to support individuals facing financial hardship. Check out programs such as the Financial Hardship Service and the National Debt Helpline for guidance and resources.

3.    Financial Counselling Services: Seek guidance from professional financial counsellors who can provide advice on managing debts, budgeting, and negotiating with creditors. Services like the National Debt Helpline and Financial Counselling Australia can connect you with experienced counsellors.

4.    Reviewing Loan Terms: Explore the possibility of refinancing or restructuring your debts. This could involve extending the loan term, reducing monthly payments, and providing short-term relief. Don’t hesitate to reach out to us at My Mortgage Hacks to review your options.

Facing financial hardship is tough, but remember, you're not alone. By reaching out for help early and exploring available resources, you can find solutions to overcome these challenges. Financial hardship is a temporary setback, and with the right information and support, you can regain control of your financial well-being. Don't hesitate to open up to your lender, explore assistance programs, and seek guidance from professionals – there's help available to guide you through this journey.

Reach out to Kath on 0417 601 803 if you have any questions or would like some guidance.