Five practical ways to beat financial hardship

1. Talk to a financial counsellor

There are government-funded financial counselling services available in every state and territory. They come under the umbrella of Financial Counselling Australia, opens in new window.

Their motto states: “Without fees. Without bias. Without judging. We're on your side.” If you need help, FCA is a great place to start.

A financial counsellor will help you take stock of your financial situation and regroup. Their services are free, independent and confidential, and include:

• help with budgeting
• mapping out sustainable repayment plans
• talking to your creditors
• looking into government assistance.

To find the nearest financial counselling service, go to Financial Counselling Australia, opens in new window. You can also call them for free on 1800 007 007.

2. Contact your bank

Many people don’t get in touch with their bank if they’re struggling with their finances. It can be hard to make the call, but you’ll usually find your bank to be receptive and reasonable. To learn more about the support we offer, head to financial hardship.

Your bank will look at your individual circumstances and work on a plan. It might be a short break from repayments, or perhaps a debt consolidation loan.

The important thing is to talk to someone before it’s too late. If you’re one of our customers, please read our article, Struggling financially? How we can help. If you have a NAB home loan head to diffulty making your loan repayments.

Another site worth looking at is the Australian Bankers Association. It has a wealth of resources, including links to the financial hardship teams, opens in new window, at each bank or financial institution.

3. Work out a budget

When you’re battling, it’s easy to let things slip – and spend money you don’t have.

But working out how much money is coming in, how much you’re spending, and where it’s going, can help you take charge of a situation.

Read our advice on how to start a budget.

4. Set goals

Once you’ve sorted out your budget, you’ll be in a better place to set some realistic goals.

This might be to pay down your credit card, save for a washing machine, buy a better car, or work towards a house deposit.

Setting big and small goals isn’t just satisfying – it’s a great way to stay on top of things too.

5. Start saving today (or tomorrow)

Once you’ve got a budget in place, set your goals, and mapped out a financial plan, it’s time to start saving.

Most of us know the basics – a dollar here, a dollar there, make a habit of it, it all adds up, and so on. But it’s true (and it works). Plus, it does wonders for your morale to see your debts dropping and your assets building.