Find Relief with a Debt Moratorium
Get specialist debt support to pause repayments and regain control of your finances today.

What is a Debt Moratorium?
A debt moratorium is a temporary pause on your loan or credit card repayments, giving you time to get back on your feet during financial hardship. In Australia, a debt moratorium can last between 3 to 12 months, depending on your arrangement with the lender. During this period, you can either stop repayments altogether or reduce the amount, helping you avoid default or falling deeper into debt. This option is particularly useful if you're facing unexpected situations like job loss, injury, or waiting on an insurance payout.
How Can Fix Bad Credit Help?
At Fix Bad Credit, we understand that financial stress can feel overwhelming. That’s why we negotiate directly with your creditors on your behalf to set up a moratorium of debt payment, giving you breathing space while we work on finding long-term solutions. Our debt specialists, well-versed in Australian credit law and processes, will guide you through options such as debt consolidation, settlement, or refinancing, tailored to your individual circumstances.
While interest may continue to accrue during the moratorium, this temporary relief helps you regain control over your finances without the threat of collections or credit report damage. With Fix Bad Credit’s support, you’ll have the time and the plan to get your financial health back on track.
Contact us today for a free debt and credit assessment and let us help you explore your debt moratorium options.
Benefits of Debt Moratorium
Temporary Financial Relief
A debt moratorium provides essential breathing space by pausing or reducing repayments, allowing you to focus on urgent expenses. However, interest may still accrue, increasing total debt, so planning for resumed payments is crucial.
Avoiding Default and Collection Activities
Debt moratoriums prevent defaults and aggressive debt collector efforts, offering peace of mind during financial difficulties. While this protects credit scores, the moratorium may still be reported, impacting future borrowing. Proactive action can help reduce these risks.
Flexibility in Payment Arrangements
Debt moratoriums provide flexible payment options, such as full payment pauses or reduced payments. This flexibility helps manage budgets during challenging times. However, it may extend loan duration and increase overall interest, so careful negotiation is essential.
Opportunity for Financial Recovery
A debt moratorium can facilitate long-term recovery by relieving repayment pressure. You can then focus on exploring other debt management options. Ongoing budgeting and planning are essential to avoid falling back into debt.

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Four-Step Process for Working with Fix Bad Credit on a Debt Moratorium
Free Initial Review
The process begins with a free review, where one of Fix Bad Credit’s debt specialists will assess your financial situation to understand the challenges you’re facing. This assessment includes a thorough review of your income, expenses, existing debts, and the reasons for your financial hardship (e.g., job loss, illness, or an emergency).
Eligibility Check
After the consultation, Fix Bad Credit will check your eligibility for a debt moratorium. We’ll review your specific circumstances to determine if a moratorium of debt payment is the right option for you. During this stage, we also assess the types of debts (secured or unsecured) that could be covered by the moratorium, such as home loans, credit cards, or personal loans.
Negotiation with Creditors
Once eligibility is confirmed, Fix Bad Credit will negotiate directly with your creditors. This negotiation involves securing one of the following types of debt moratorium arrangements:
- Full Repayment Pause: No repayments (principal or interest) for an agreed-upon period.
- Partial Repayment Pause: Reduced repayment amount (e.g., 50% of usual payment).
- Interest-Only Payments: Pay only the interest, reducing financial pressure.
During the moratorium, we may also negotiate freezes on interest or fees to further ease your financial burden.
Finalising the Agreement
Once an agreement is reached, Fix Bad Credit ensures all details are finalised with your creditor. We’ll provide guidance on next steps, including how to manage your finances during the moratorium and explore long-term solutions such as debt consolidation or refinancing once the moratorium ends.

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Frequently Asked Questions?

What is a debt moratorium, and how does it work?
A debt moratorium is an agreement with your creditors to temporarily pause or reduce your repayments for a set period, typically between 3 to 12 months. This arrangement gives you breathing space to improve your financial situation while preventing defaults and collection actions.
Who is eligible for a debt moratorium?
Eligibility for a debt moratorium depends on your financial circumstances, such as job loss, medical emergencies, or unexpected expenses. At Fix Bad Credit, our experts can assess your situation during a free review to determine if a debt moratorium is right for you
Will my credit score be affected by a debt moratorium?
While a debt moratorium can provide relief, it may be noted on your credit report, which could impact your score. However, by preventing defaults and missed payments, it ultimately helps protect your credit standing in the long run.
What types of debts can be included in a moratorium?
Debt moratoriums can apply to various debts, including personal loans, credit cards, and even secured debts like home loans. Our team at Fix Bad Credit will negotiate on your behalf to create a comprehensive plan tailored to your needs.
How can Fix Bad Credit assist me with a debt moratorium?
Fix Bad Credit specialises in negotiating favorable terms for debt moratoriums. We handle the communication with creditors, ensure that all terms are documented, and leverage our expertise in credit law to secure the best possible outcome for your financial recovery.
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