Video chapters
Quick answer
Verify the debt and collector, work out an affordable proposal and put your financial-hardship request in writing with supporting information. If the proposal is refused, ask for reasons, keep paying only what is genuinely affordable where appropriate, and check the lender’s internal complaint process and applicable external dispute resolution scheme.
About this historical recording
This recording is retained because it explains the issue in plain language and forms part of the Go To Court video archive. The current answer, practical steps and official sources on this page take priority wherever legislation, terminology, institutions, deadlines, penalties or service arrangements have changed.
What to do now
- Verify: Ask for the creditor, account, balance and documents showing you are responsible for the debt.
- Budget: Prepare an honest income-and-expenses statement and an amount you can sustain.
- Write: Make the hardship or repayment proposal in writing and ask for the response and reasons in writing.
- Escalate: Use the creditor’s complaint process, the relevant ombudsman or financial counsellor, and get advice about proceedings or enforcement.
Transcript
If the debt collector or credit company won't agree to the payment plan that you have offered, in the first instance I would suggest that you persist, put it in writing, make sure they have a clear understanding of what your assets and your income are, what you are able to repay, how you're able to repay it, and just try one more time to see if you can come to an agreement. If that doesn't work, your options are either to become proactive about it, and that means seeking legal advice about things like entering into a debt agreement or considering bankruptcy.
You should certainly seek legal advice before you do that because there are consequences to declaring bankruptcy or entering into a part of the agreement. Your other option of course is to sit back and wait and see what they do. See what the debt collector wants to do in terms of chasing you for the debt. You might be a little bit on the back foot if you do that, but you might find that if the debt is small enough or if it's not in their interest to sue it or you don't have sufficient assets for it to be worth their while, they might in fact write the debt off and you don't have to expend any further costs in chasing it yourself.
Current sources
Sources checked 4 September 2026.
Important
This page provides general information only; it is not legal advice and does not take account of your circumstances. The embedded video is a historical recording. Laws, court arrangements, procedures, fees, deadlines and official guidance can change. Check the current sources above and obtain advice from a qualified lawyer about your situation.