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Personal Loans

If you can’t afford your Personal loan repayments the lender may start legal action to recover their money. Legal action can increase the costs you owe, so take steps early to try and avoid it

Immediate actions you can take

  • Contact the lender and seek Hardship Assistance.

    The contract may be renegotiated with payments reduced, or arrears deferred to allow you extra time to pay.

  • You may have Credit Insurance

    If your difficulties are a result of unemployment, injury or sickness, check if you have any Consumer Credit Insurance to help pay your loan in this situation. Ask your Loan provider for advice on this or check your contract.

  • Is the loan more than you could ever manage?

    Some loans may be found in court to be ‘unjust’: eg if the bank gave you a loan which you could never really afford, the debt may be cancelled or reduced. Legal Advice, or Financial Counselling Advice will help here.

  • Ombudsman Service may help

    If Hardship assistance is not offered, lodge an action with Finance Ombudsman Service to review the situation. This also halts any legal action while your case is reviewed.


  • You could lose assets!

    Even if a loan is unsecured, a lender might recover arrears by going to Court to seek a warrant to seize assets or goods such as a car, or even to get a house sold.