Changes to Australia's credit reporting system kicked in on 1 July, designed to better reflect the credit history of consumers who are in financial hardship.
Financial hardship can affect anyone at any time. A financial hardship arrangement is an agreement between a borrower and a lender to adjust the borrower's loan repayments because something unexpected has affected their ability to repay. These unforeseen circumstances might include natural disasters, illness, injury or loss of employment.
A financial hardship arrangement in a credit report shows that a person has taken steps to take control of their financial situation and are working with their lender to get back on track during difficult times.