Question 1

What is a Temporary Hardship Plan?

Accepted Answer

A Temporary Hardship Plan (THP) is a 3-month arrangement where we negotiate reduced payments with your creditors on your behalf. Instead of juggling multiple debts and dealing with collection calls, you make one consolidated payment to Hardship Hub, and we distribute the agreed amounts to each of your creditors.

Question 2

Who is eligible for a Temporary Hardship Plan?

Accepted Answer

Any Australian resident experiencing genuine financial hardship can apply. This includes hardship caused by job loss, reduced income, illness, injury, family breakdown, natural disasters, or other unexpected life events. You must have at least one active debt that you are struggling to repay.

Question 3

How much does it cost?

Accepted Answer

There is a one-time setup fee of $49 to establish your Temporary Hardship Plan. After that, a small processing fee of $2.20 per creditor per month covers the ongoing management and distribution of your payments. There are no hidden fees, exit fees, or penalty charges.

Question 4

How long does the process take?

Accepted Answer

Your online application takes less than 10 minutes to complete. Once submitted, we typically begin contacting your creditors within 1 to 2 business days. Most creditors respond within 5 to 10 business days. The entire process from application to plan activation usually takes 5 to 10 business days.

Question 5

Will a Temporary Hardship Plan affect my credit score?

Accepted Answer

A Temporary Hardship Plan is designed to protect your credit. Creditors are required by law to consider hardship applications, and an approved hardship arrangement can prevent defaults and late payment marks on your credit file. In most cases, creditors note the hardship arrangement rather than recording missed payments, which is far better for your credit rating than ignoring the debts.

Question 6

What types of debt are covered?

Accepted Answer

Hardship Hub can help with most unsecured debts including credit cards, personal loans, buy now pay later debts, utility bills (electricity, gas, water), telecommunications bills, and some secured debts. We cannot assist with court-ordered debts, child support, or HECS/HELP student loans.

Question 7

How do creditors typically respond?

Accepted Answer

The majority of creditors accept hardship arrangements. Under Australian Consumer Law and the National Credit Code, creditors are required to consider hardship applications. Most prefer receiving reduced payments over no payments at all. Our acceptance rate across all creditor types is approximately 94%.

Question 8

What happens if a creditor rejects my hardship request?

Accepted Answer

If a creditor rejects your request, we will notify you and explain the reasons given. We can then assist you in lodging a complaint with the relevant external dispute resolution scheme (such as AFCA for financial services) or explore alternative options. A rejection from one creditor does not affect arrangements with your other creditors.

Question 9

Can I cancel my plan?

Accepted Answer

Yes, you can cancel your Temporary Hardship Plan at any time with no exit fees or penalties. If you cancel, your creditors will be notified and your accounts will revert to their standard payment terms. We recommend speaking with us before cancelling so we can discuss your options.

Question 10

Is my information secure?

Accepted Answer

Absolutely. We take data security seriously. All personal and financial information is encrypted in transit and at rest using industry-standard encryption. We comply with the Australian Privacy Principles (APPs) under the Privacy Act 1988 and never share your information with third parties beyond what is necessary to manage your plan.

Question 11

What happens at the end of the 3-month plan?

Accepted Answer

As your plan nears completion, we will review your financial situation with you. If you have recovered sufficiently, you can return to normal payment terms with your creditors. If you still need support, we can apply for an extension or explore other options such as a formal debt agreement or referral to a financial counsellor.

Question 12

Do I need to speak with my creditors at all?

Accepted Answer

No. Once you authorise Hardship Hub to act on your behalf, we handle all communication with your creditors. You do not need to make any phone calls, write any letters, or have any difficult conversations. We keep you informed of progress through your online dashboard and email notifications.

Everything you might want to know.

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