The Finance Algorithm

Hardship Payment Calculator

Plan for temporary reduced loan payments during financial difficulty

Updated October 2026Built and checked by MaverickHow it's calculatedReport an error

Your numbers

Updates as you type
$
$15k

Amount remaining on your personal loan

$
$400

Your current monthly payment

%
10%

Your current loan rate

$
$200

Maximum you can pay during hardship period

3

How long do you expect the difficulty to last?

Documenting the cause strengthens your hardship application

The button asks our AI to explain these figures in words.

Hardship repayments: the cost

Monthly shortfall

$200

paying $200 for 3 months

Balance after

$14,773

when the current repayment resumes

Extra interest

$270

vs keeping up the current repayment

Longer by

+2 months

clears in 48 months

Your loan balance month by month

The reduced payment still brings the balance down, more slowly.

$0$3,750$7,500$11,250$15,000M0M1M2M3

Current repayment vs a hardship period

Interest is charged on a higher balance for longer. This assumes the current repayment resumes and the term extends; a lender may instead raise the repayment.

$18,060Current repayment (46m)$18,330With hardship period (48m)
Asking for hardship help
Contact your lender's hardship team
You can tell your lender, by phone or in writing, that you can't meet your repayments. It generally has 21 days to give you its decision, and if it refuses it must give written reasons and tell you that you can complain to the Australian Financial Complaints Authority (AFCA). An agreed hardship arrangement can show on your credit report for 12 months but isn't used to calculate your credit score. The free National Debt Helpline is on 1800 007 007.

How it works

If you're struggling to keep up with repayments, your lender has to consider a hardship request: lower repayments for a while, a pause, or a longer term. This shows what each would do to your loan, so you know what you're asking for.

  1. 1Enter your current loan balance and repayment
  2. 2Add your loan interest rate and remaining term
  3. 3Set what you can realistically afford during hardship
  4. 4Estimate how long the difficulty will last
  5. 5See the impact and plan your recovery

The figures today

As of 7 November 2026, the lowest personal loan rate is 5.80%, from Plenti Personal Loan, while the typical best across 68 institutions is 7.96%.

Personal loan rates

Worked examples

Job Loss

Janet lost her job. She owes $18,000 at 11%, paying $450 a month, and can manage $150 a month for 4 months.

Current loan balance
$18,000
Current monthly repayment
$450
Loan interest rate
11%
What can you afford now?
$150
Expected hardship duration (months)
4
Reason for hardship
Job loss/Reduced hours

$150 is less than the interest, so the balance edges up to $18,061 over the 4 months. Back on $450 a month, the loan runs 4 months longer and costs $697 more - far less than the cost of missed payments and default.

Medical Recovery

David is recovering from surgery. He owes $12,000 at 10%, paying $280 a month, and can pay $100 a month for 2 months.

Current loan balance
$12,000
Current monthly repayment
$280
Loan interest rate
10%
What can you afford now?
$100
Expected hardship duration (months)
2
Reason for hardship
Illness or injury

$100 covers the interest, so the balance stays at $12,000. The loan runs 2 months longer and costs $200 more.

Questions people ask

Will hardship affect my credit score?
A hardship arrangement is recorded on your credit report as financial hardship information for 12 months, but it isn't a default and doesn't affect your credit score. Missing payments without an arrangement can be listed as late or as a default.
How do I apply for hardship?
Contact your lender directly - call, email, or use their hardship request form. Explain your situation and provide evidence (termination letter, medical certificate). They have 21 days to respond with a decision.
Can lenders refuse a hardship request?
They can, but must have a valid reason and explain it. You can dispute unreasonable refusals through the Australian Financial Complaints Authority (AFCA). Most lenders prefer to help rather than deal with defaults.

The terms, in plain English

Hardship Variation
A temporary change to your loan terms due to financial difficulty - legally required for lenders to consider.
Payment Pause/Deferral
Temporarily stopping payments entirely. Interest still accrues and must be repaid later.
Interest-Only Payments
Paying just the interest during hardship - balance stays the same but doesn't grow.

Official sources

Emergency Fund Calculator

Build savings to avoid future hardship

Variable Income Planner

Plan for income fluctuations

Debt Consolidation Calculator

Simplify debts after recovery