Defined Terms and Documents       

Financial Hardship means an indebted customer is willing, but unable to meet their contractual debt obligations because of unexpected events or unforeseen changes that impacts cashflow, for example:

• Changes in income or expenditure

• Changes in employment status (such as losing a job or having hours reduced)
• Significant life events such as a relationship breakdown or death in the family
• Injury or illness
• Emergency event or natural disaster.

The general understanding of Financial Hardship is that an indebted customer can reasonably be expected to recover their financial position if appropriate assistance or arrangements were provided.  Financial Hardship assistance is intended to bridge the time between when a customer’s circumstances change (and cannot meet their normal repayments) and the time when they can start paying their debt in full - either because their original financial situation is restored (e.g. a person is re-employed after a period of unemployment) or because a new repayment arrangement is agreed which the customer can meet.

Some of the banks, incl. NAB offer 'Financial Hardship Assistance'.