Hardship Arrangement

A hardship arrangement is a temporary adjustment to your loan repayment terms negotiated with your lender when you are experiencing genuine financial difficulty — such as job loss, illness, or a major unexpected expense. Under the National Credit Act, registered lenders are required to engage in good faith with borrowers experiencing financial distress. Hardship arrangements may include a temporary reduction in monthly payments, a short payment holiday, or a restructuring of the remaining balance over a longer term. A hardship arrangement is not the same as debt review — it is an informal agreement with a single lender and does not provide the legal protection from legal action that debt review does.