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Home>Glossary>Hardship plan

Hardship plan

Debt, arrears & collections
A temporary agreement with a lender to reduce or pause payments.

Overview

Hardship plans are designed to help you get back on track.

They may involve reduced payments, frozen interest, or temporary pauses.

Why it matters

  • It can prevent further missed payments.
  • It provides breathing room to stabilise finances.
  • It may be recorded on your credit file.

FAQs

Will a hardship plan affect my credit score?

It can, depending on how the lender reports the arrangement.

How do I request a hardship plan?

Contact your lender and explain your situation as early as possible.

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