If your income drops and car-loan repayments look difficult, contact your lender early and explain what you can realistically afford. Ask about hardship assistance before the next payment becomes a problem; a request does not automatically pause your repayments.
The ABS release on 15 October 2026 put September’s seasonally adjusted unemployment rate at 4.7%, with the trend rate steady at 4.6%. The ABS flagged a possible survey-methodology effect and recommends trend data for understanding the underlying labour market. These are national figures, not a prediction about your job. Read the ABS release.
What can you afford on your new income?
Start with current take-home pay, rather than your previous salary or expected overtime. List essential household spending, other debt repayments and bills due soon. Separate money already available from income you hope to receive.
Include the costs of keeping your car on the road. Our car running-costs guide covers items such as registration, insurance, fuel and servicing. A smaller loan repayment will not remove those expenses.
Keep recent payslips, statements and a simple budget together so you can explain the shortfall clearly.
Ask your lender about hardship assistance
Contact the lender’s hardship team by phone, email or its online channel. Explain what changed, whether you expect it to be temporary, and the repayment amount you believe is manageable.
Moneysmart’s hardship guide says lenders must consider requests for help. Depending on the circumstances, options may include a payment plan or a change to repayments. The outcome depends on the lender’s assessment.
Ask for any arrangement in writing, including its duration, payment dates and what happens afterwards. Check how interest, fees and the remaining loan term would be affected. If the agreed amount becomes unaffordable, contact the lender again promptly.
Would refinancing actually improve the position?
A lower monthly repayment can come from stretching the debt over more years. Moneysmart’s refinancing guidance warns that a longer term can increase total costs, even when the interest rate is lower.
Compare the full costs and affordability before taking on a replacement loan. Another application is not a substitute for discussing hardship on the existing loan.
Where can you get free help?
A financial counsellor can help you assess your situation and deal with debts. This help is free and confidential; Moneysmart explains how to find financial counselling.
Aussie Loans is a finance broker. For questions about a loan arranged through us, contact our team; requests to change an existing repayment arrangement need to be discussed with the lender.
General information, current at 16 October 2026. This is not personalised financial advice.
