For borrowers, hardship can arise quickly. A reduction in work hours, illness, rising rent, higher insurance premiums, vehicle repairs or delayed customer payments can all make a previously manageable repayment feel difficult. ASIC’s ongoing focus on lender conduct is a reminder that borrowers are entitled to ask for help early, and lenders are expected to consider requests fairly based on individual circumstances.

This does not mean a lender must automatically approve every request. It does mean the process should be reasonable. Borrowers should be told what information is needed, how long an assessment may take, and what temporary options might be available. These may include reduced repayments, a repayment pause, an extension of the loan term or another arrangement suited to the situation.

The practical takeaway is to avoid waiting until a missed payment becomes a default. If cash flow is tightening, review your budget, check upcoming bills and estimate repayments before committing to new credit. If you already have a loan, contact the lender as soon as you can explain the change in your income or expenses. Keep notes of calls, copies of emails and any documents you provide.

Borrowers considering applying for a small loan should also treat affordability as more than a quick approval question. A fast online process can be helpful during an emergency, but the right loan is one that still works after the urgent bill is paid. Check the total cost, fees, repayment frequency, late payment consequences and whether the loan allows flexibility if your circumstances change.

Small business owners should be especially careful where personal and business cash flow overlap. A loan used to cover stock, tools, wages or seasonal gaps may be sensible, but only if repayments align with realistic revenue timing. Casual workers and self-employed borrowers should also allow extra buffer for irregular income.

The broader lesson from ASIC’s hardship focus is that responsible borrowing and responsible lending go together. If you are under pressure, ask for help early, document everything and avoid taking on extra debt without a clear repayment plan. Support is easier to arrange before the situation becomes urgent.