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Deciding whether you owe the debt

Ask the creditor for a copy of the contract and check that you actually owe the debt.

If you have any doubts about the contract or whether it is legally enforceable, get advice.

If you decide that you do owe the debt:

  • check that the creditor has not run out of time to chase you for the debt (see ‘Time limits on debts’, link below)
  • check the amount that the creditor says you owe
  • request a statement if you do not agree with the amount the creditor is claiming – ask for a detailed list of individual items, interest (if relevant), fees and charges
  • ask the creditor to correct or clarify the statement if you think there are errors or items are not clear.

It is best to put any requests to the creditor in writing. A financial counsellor can help you with this and may also be able to contact the creditor on your behalf.

You have a right to dispute the debt or the amount of the debt. See ‘Disputing a debt’ (link below).

Varying repayments because of hardship

You may have the right to ask to vary your repayments if you are experiencing hardship, such as job loss or illness if:

  • your loan is covered by the Consumer Credit Code
  • the creditor has a hardship policy.

The Consumer Credit Code covers most personal and household loans, including car and home loans and credit cards. Some industry codes of practice also include hardship policies, including water and energy (electricity and gas) companies and many banks. Contact the creditor to find out what their policy is.

Contact the Consumer Action Law Centre (CALC) or see their factsheet called 'How do I change my loan repayments if I have suffered hardship?' (link below) for detailed information about the changes you can ask for and how to ask for them.

If the creditor rejects your request to vary your repayments you may be able to have the application considered at the Victorian Civil and Administrative Tribunal (VCAT). Get legal advice.

More information

Disputing a debt

Joint debt

Time limits on debts

Related publications

Debt problems: the law, your options

Weighing it up

Related websites

Consumer Action Law Centre – factsheets

How we can help

Call Victoria Legal Aid’s (VLA) Legal Information Service for free information over the phone about the law and how we can help you with your legal problem. You can speak to a legal information officer in English or ask for an interpreter. Phone (03) 9269 0120 or 1800 677 402 (country callers), Monday to Friday from 8.45 am to 5.15 pm.
VLA’s other free legal services include:

  • advice at VLA offices and other locations across Victoria
  • lawyers who are on ‘duty’ to help at many courts and tribunals.

For some matters we can provide you with a lawyer to help you run your case.

To find out more about any of our legal services see What we do.

Who else can help?

See Getting help with financial problems for details of free financial counselling services in your area and other organisations that can help you.