The information in this section is aimed at debtors owing debts of no more than $12,000 (which is the limit for claims in the Civil (Minor Claims) Division of the Magistrates Court of South Australia from 1 August 2016).

If you owe a debt to a subcontractor or supplier in the building and construction industry, then you may be facing a claim under the Building and Construction Industry Security of Payment Act 2009. For further information, see Debts in the Building and Construction Industry.

If your debt relates to certain farm debts incurred through your work as a farmer, see Debts in the Farming Industry for more information.

Many of us go through a time when we genuinely cannot afford to repay money we owe. However, if you are being pursued for a debt which you believe you do not owe, you should question the debt without delay (see Disputing a debt).

If you are the director of a company, and the debt is owed by your company to the judgment creditor, unless you have given a personal guarantee, you are not liable to pay the debt. This is so even if the company cannot pay or has no money.

Mortgage or loan repayments

If your problem relates to a house repossession or mortgage arrears, get advice from the Legal Helpline on 1300 366 424 or a financial counsellor as soon as possible. It is far better to deal with the problem quickly.

Contact the lender if you are struggling to make payments on your mortgage or loan. You can ask for a hardship variation of your loan under the National Credit Code which may mean a period of reduced payments.

Do not ignore letters or other types of contact from your lender. If you receive court documents, get legal advice quickly.

If you cannot work out an arrangement with your lender, you have the right to ask for a review of the lender’s decision. You can also complain to the Australian Financial Complaints Authority for free if you disagree with the lender’s decision.

Get free help from a financial counsellor who can help you understand your options and negotiate with creditors on your behalf. There is more information about how to access a free financial counsellor on the National Debt Helpline website. You can also call the National Debt Helpline on 1800 007 007.

MoneySmart has useful information available on the MoneySmart- Problems Paying Your Mortgage website.

The Australian Bankers Association has an online hub to help consumers struggling to pay their mortgage, personal loan, credit card or other debt. The Financial Assistance Hub is available on the Australian Banking Association website.

Utilities or phone bills

Just like your mortgage or loan, you can also ask for help if you are struggling with the cost of utilities, phone and internet. Contact your provider’s hardship team promptly. To make things easier, work out how much you can pay in instalments before speaking to your provider.

Get free help from a financial counsellor who can negotiate with creditors on your behalf and help you understand your options. Financial counsellors will help you prepare a budget and access available emergency relief.

More information about how to access a free financial counsellor is available from the National Debt Helpline website. You can also call the Helpline on 1800 007 007. Useful information about asking for help with your phone bill is on the National Debt Helpline - Phone & Internet Bills webpage.

Council Rates

Council rates are as important as your other bills and you must remember to include them in your budget even if you do not have a mortgage to pay. Your council can sell your property under the Local Government Act 1999 (SA) if rates remain unpaid for 3 years or more.

If you are struggling to pay, ask the council for a payment arrangement. If you are unable to work out what to do, try speaking to a free financial counsellor.

More information about how to access a free financial counsellor is on the National Debt Helpline website. You can also call the Helpline on 1800 007 007.

Should I use my credit card or get a payday loan?

Avoid using a payday lender or your credit card to manage essential payments. Payday loans or short-term credit often set you up for further unmanageable debt which makes things worse.

Avoid using “buy now pay later” schemes. While changes to the law from 10 June 2025 mean that this type of credit is now regulated, there may still be additional fees or costs and you may be adding to already unmanageable debt.

If you need funds quickly, apply for a NILS (No Interest Loan Scheme). This can pay for things like household goods, car repairs or school essentials. You will have to repay the money over time but there are no additional fees or interest. You also must meet certain criteria. Visit the Moneysmart website for information on payday loans and how to access NILS.

A free financial counsellor can help you with budgeting and other sources of relief to assist with paying essential bills. More information about how to access a free financial counsellor is on the National Debt Helpline website. You can also call the Helpline on 1800 007 007.