Written 29 September 2026, after the Reserve Bank’s announcement. General information only, not financial advice.
The Reserve Bank has raised the cash rate by 0.25 percentage points to 4.60%, the fourth rise this year (RBA, 29 September 2026). Lenders usually pass rises on to variable home loans, and some personal loans and credit products may follow. If your budget was already stretched, another increase can be the point where things start to slip.
If that’s you, you’re not alone, and there are practical steps you can take, several of them free. This guide goes through them in the order we’d suggest.
1. Work out what’s actually changing
Your lender will tell you in writing if your rate is changing and from which date. On a typical 30-year home loan, a full 0.25-point rise adds roughly $16 a month for every $100,000 owed (an estimate; your figures depend on your loan). Credit cards and personal loans work differently. Check your latest statements or ask each lender.
Then put everything in one place: each debt, the repayment, the due date and the interest rate. It’s much easier to make good decisions with the full picture in front of you.
2. Talk to free, independent help first
A financial counsellor can help you build a budget, work out which debts to prioritise and even speak to your lenders for you. The service is free, independent and confidential.
- National Debt Helpline: 1800 007 007 or ndh.org.au
- Small Business Debt Helpline (if you run a business): 1800 413 828
3. Ask your lender about hardship, early
Under the National Credit Code, you can ask for a hardship variation if you can’t meet repayments because of illness, job loss, reduced income or another change in circumstances. You don’t have to wait until you’ve missed a payment. Lenders must consider and respond to your request. Options can include reduced or paused repayments for a period, or a longer loan term.
Keep in mind: lenders don’t have to agree, interest may keep building, and a hardship arrangement can be recorded on your credit report for 12 months (if you keep to it, your repayment history shows as up to date). Ask exactly how any arrangement will work before you agree to it. Moneysmart explains how to make a request in its guide to problems paying your bills.
4. Protect the essentials
If you can’t pay everything, a financial counsellor can help you work out what comes first. Generally that means keeping a roof over your head and the lights on: rent or mortgage, utilities and car finance if you need the car for work. Utility providers have hardship programs too.
5. Be careful with quick fixes
When money is tight, offers that promise to make debt “disappear” can look tempting. Be wary of anyone who guarantees a result, pressures you to sign quickly, or doesn’t explain their fees in writing. Before agreeing to anything, ask:
- What will this cost me, and when do I pay?
- How will it affect my credit report?
- What happens if it doesn’t work out?
A debt consolidation loan can simplify repayments, but it can cost more overall over a longer term, and applications can be declined. Formal options such as a debt agreement or bankruptcy have serious, lasting consequences, including on your credit report and on the National Personal Insolvency Index. They’re right for some people and wrong for many. Get free advice before choosing one.
Where a paid service fits
Debt Negotiators is a licensed, fee-based service. We’re not the National Debt Helpline, a government agency or a not-for-profit. Some people choose a paid service because they want one team to look at every option with them, including the free ones, or to prepare and manage a formal option for them.
Our first conversation costs nothing. If you choose one of our paid services, we explain the fees and the downsides before you decide. If free help or a different option suits you better, we’ll tell you. Contact us or call 1300 351 008.
Sources
- Reserve Bank of Australia, Statement by the Monetary Policy Board: Monetary Policy Decision, 29 September 2026
- ASIC Moneysmart, Problems paying your bills and Credit scores and credit reports
- National Debt Helpline, ndh.org.au, 1800 007 007
This article is general information only, not financial advice. It doesn’t take your personal circumstances into account. Consider getting independent advice, including free help from the National Debt Helpline on 1800 007 007, before making a decision.
Debt Negotiators is a trading name of A & M Group Pty Ltd (ABN 90 138 457 520) · Australian Credit Licence 390820 · AFCA member 25029 · AFSA Registered Debt Agreement Administrator 1403. Fees apply to our paid services and are explained in writing before you decide.
