By the Debt Negotiators team · Last updated 4 November 2026
If you’ve seen an ad or social post promising $10,000 debt relief from the government, you’re not alone. Many ask you to “check your eligibility” with a quick form. This guide explains what’s real, what isn’t, and where to find free government debt help before you pay anyone.
This is general information, not personal advice.
Is there a $10,000 government debt relief program in Australia?
No. We couldn’t find any $10,000 debt relief program, grant or payout on official Australian government websites, including Moneysmart, AFSA, Services Australia and the National Debt Helpline. Check any claim like this on a .gov.au site before you hand over your details.
The closest real example of the government reducing personal debt is the 20% cut to HELP student loan debt, which passed Parliament in 2025 and is applied by the ATO. It applies to HELP debt, not credit cards, personal loans or other consumer debts.
The same pitch has been fact-checked overseas. A US video claiming over $10,000 in debts “can now be erased” was found by Lead Stories to lead to an advertorial page that earned referral fees, with no government program behind it.
What are these ads actually offering?
They aren’t offering a government payment. Where a real service sits behind them, it’s usually a private business, and AFSA warns that searching phrases like “can’t pay my debts” can cause fake advice ads to appear in your social media feeds.
AFSA says these ads are likely scams and tells people to ignore slick ads promising a way out of bankruptcy. Moneysmart explains that debt management firms are private businesses that charge fees, and their services can include arranging formal debt agreements under the Bankruptcy Act.
Calling that “government debt relief” is misleading. ASIC has cracked down on debt management firms over claims that suggested government approval, noting that labels like “Government Approved” can strongly influence vulnerable consumers.
What free debt help actually exists?
Real government debt help is mostly free advice and low-cost support, not cash to clear your debts. The main options are free financial counselling, free debt management plans, hardship arrangements with your lenders, no interest loans for essentials and Centrelink advance payments.
- Free financial counselling. Call the National Debt Helpline on 1800 007 007, weekdays 9:30am to 4:30pm. It’s always free and confidential, and counsellors don’t lend money or sell you anything. Moneysmart says a financial counsellor can help you negotiate with government agencies, utilities, telcos and other creditors.
- Mob Strong Debt Help. Aboriginal and Torres Strait Islander peoples can call Mob Strong Debt Help on 1800 808 488.
- Free debt management plans. Way Forward is a not-for-profit that sets up affordable debt management plans, and all your repayments go directly to your creditors.
- Hardship help from your lender. When you ask, your lender must consider you for hardship assistance. That could mean a payment plan or changed repayments. If they refuse, they must give reasons.
- No Interest Loans (NILs). NILs for essentials let you borrow up to $2,000 with no interest, fees or charges. The program is run by Good Shepherd and funded by the Australian Government. You can’t use it to pay existing debts or everyday bills, but it can help you pay for essentials such as appliances or car repairs.
- Centrelink advance payments. You may be able to get an advance payment. It’s like a loan from your Centrelink payment, and you pay it back by getting a bit less in your next 13 payments.
How do you spot a misleading debt relief ad?
Be wary of anything that suggests the government is behind it, promises a fast clean slate, or pushes you to act now. AFSA’s red flags include creating an unnecessary sense of urgency and suggesting a bankruptcy or debt agreement won’t affect your credit rating.
| What the ad says | What it usually means |
|---|---|
| “New government debt relief program” | No such program appears on official government sites. Debt agreements aren’t government programs. |
| “Government approved” | ASIC says being regulated doesn’t mean a debt agreement or administrator is approved by the government. |
| “Wipe your debt” or “clean slate” | It may be a formal option under the Bankruptcy Act, which is listed on a public register and your credit report. |
| “Won’t affect your credit” | AFSA lists this as a warning sign. A debt agreement can stay on your credit report for up to 5 years or longer. |
| “Free debt help, check if you qualify” | The first chat may be free, but the service may not be. Financial counsellors never charge. |
| “Act now, spots are limited” | Pressure to sign up quickly is a red flag, according to AFSA and Moneysmart. |
Is a debt agreement “government debt relief”?
No. ASIC says debt agreements aren’t programs run by the government and don’t receive government approval, even though they’re regulated and proposals are lodged with AFSA.
A debt agreement is one formal option under the Bankruptcy Act. You pay an affordable percentage of your combined debt to an administrator over time, and once you complete it, your creditors can’t recover the rest. AFSA says it may be a suitable alternative to bankruptcy. It also has serious downsides:
- Proposing a debt agreement is an act of bankruptcy, and your creditors can use this to apply to the court to make you bankrupt.
- Your name appears on the National Personal Insolvency Index. A completed agreement stays on it for 5 years from the date it was made or the date you finish, whichever is later.
- Your details may appear on your credit report for up to 5 years, or longer in some cases.
- It doesn’t release you from all debts. Secured creditors can still sell assets you’ve offered as security if you fall behind.
- It isn’t a consolidation loan, and there are limits on the debt and income you can have to be eligible.
- You may not be able to work in certain professions.
What should you check before signing up with any debt help company?
Check the company is properly licensed or registered, get every fee in writing, and don’t sign anything under pressure. Talk to a free financial counsellor first.
- Licence. Debt management providers must hold a credit licence with a debt management authorisation. Search ASIC’s Professional Registers to check.
- Registration for debt agreements. Only use an administrator on AFSA’s register of debt agreement administrators.
- AFCA membership. Debt management firms must be AFCA members, and you can complain to AFCA for free.
- Fees in writing. Ask for all fees, including establishment, ongoing and cancellation fees. Moneysmart notes some fees are charged before any service is delivered.
- Formal or informal. Ask whether it’s an informal arrangement with your creditors or a formal debt agreement. Financial Rights Legal Centre suggests asking this before you sign.
- Your living costs. Make sure the payments still leave enough for basic living expenses.
- Cooling off and cancelling. Ask whether there’s a cooling-off period and how you can cancel, and get the answer in writing.
Where does Debt Negotiators fit in?
Debt Negotiators is a fee-based service, not a government agency, and we don’t offer government grants or payouts. Free help exists through financial counsellors and the National Debt Helpline, and it’s worth considering first.
We hold Australian Credit Licence 390820 and are an AFSA-registered debt agreement administrator (RDAA 1403). If you’d like to compare paid options, including informal arrangements and formal debt solutions, you can Answer 9 quick questions or call 1300 351 008. See also our guide on how to get out of debt.
Frequently asked questions
Will the government pay off my credit card debt?
We couldn’t find any program on official government sites that pays off credit card or personal loan debt. A free financial counsellor can tell you about any government supports you may be eligible for.
Is the National Debt Helpline really free?
Yes. It’s always free and confidential, and counsellors don’t lend money or sell you anything. Call 1800 007 007.
Can I use a No Interest Loan to pay off my debts?
No. NILs can’t be used for existing debts, rent or everyday bills. They’re for essential items and services, up to $2,000.
Does a debt agreement wipe my debt?
It releases you from most unsecured debts once you complete all payments, but not every debt. Proposing one is an act of bankruptcy, and it’s listed on the National Personal Insolvency Index and your credit report.
What if I’ve already signed up after seeing an ad?
Financial Rights Legal Centre’s Credit & Debt Legal Advice line, 1800 844 949, can advise on cancelling or seeking a refund. You can also complain to AFCA for free.
