There are instances where you may find it extremely difficult to repay the debts owing to unemployment, illness or for various other reasons. In such cases, you may approach the bank for availing the benefit of ‘hardship variation’ facility. Of course, it may be very difficult to define hardship. Yet, in the year 2009, the Commonwealth Government approved increase of monetary threshold or assistance to help you to come out of such financial constraints. This is a unique resolution of Commonwealth Government, which has helped thousands of people facing serious financial difficulties.
A way to lead stress free life:
Further, in order to come to the aid of those facing serious financial difficulties, even the Government of Australia in the year 2012 passed a legislation called the Consumer Credit Legislation Amendment (Enhancements) Act 2012 (Enhancement Act). All these are intended to provide enough opportunities for every individual to fully avail the benefits of financial hardship arrangement and thereby lead a comfortable and stress free life.
What constitutes hardship
Although it is very difficult to define hardship, it is generally construed to be a case of not having enough money to meet the living expenses. Further, such financial constraints should be caused due to certain involuntary acts resulting in a sudden decrease in income. The ideal example could be a loss of job, layoffs and layouts. At the same time, the financial constraints should be temporary in nature like those caused by an unforeseen increase in expenses caused by illness.
If you are suffering from temporary financial hardship, then you can approach the appropriate financial institution and seek various remedies to tide over the situation. In such cases, the benefits that are available to you are extension of time or duration of loan, reduction in interest rate, reduction of the monthly installment and freeze on interest or a temporary stoppage of installments. In some cases, the banks may not allow freeze on interest. For more details please visit this site https://www.debtmediators.com.au/personal-debt-solutions/financial-hardship/