Video Explainers

In these short videos, the CEO of Way Forward, Fiona Guthrie explains some of the common issues people encounter when they’re dealing with financial stress.

Fiona has more than 30 years of experience in consumer advocacy. Prior to her current role, she was the CEO of Financial Counselling Australia, the peak body for financial counsellors. She was the recipient of an Order of Australia in 2017 for her work in social welfare and financial counselling.

If there’s a topic you’d like Fiona to cover in a future video, we’d love to hear from you. You can get in touch with us at: assist@wayforward.org.au

Feeling Ashamed About Debt

Read the video transcription

If you’re struggling with debt and feeling ashamed, you’re actually not alone. Many people feel this way when money problems start to pile up.

You might feel like you failed or that you should have handled things differently. But the truth is, financial hardship can happen to anyone. Illness, relationship breakdown, job loss, rising living costs. Life doesn’t always according to plan. And debt stress is far more common than most people realize.

One of the hardest things about debt is the silence that surrounds it. People often don’t talk about their financial problems with friends or family. And that silence can make the shame feel even heavier, but avoiding the problem really makes it better. The letters keep coming, the calls keep happening, and the stress keeps growing.

The important thing to remember is that there are people organizations whose job it is to help. Many people don’t realize that in Australia you have rights when you’re experiencing financial hardship. Banks, credit providers, telecommunications companies, and utility providers are required by law to consider hardship requests. That means if you’re struggling to keep up with payments, you can ask for help.

This might include things like reduced payments or a pause on repayments for a time or a more affordable long-term arrangement. You don’t have to face the situation alone, but you shouldn’t feel ashamed for asking. The sooner you reach out for help, the more options you usually have.

Now, services like Way Forward exist to support people who are experiencing long-term financial hardship. We work with you and your creditors to put in place an affordable repayment plan so you can start to regain control. For many people, that first conversation is the hardest step, but it can also be the start of things getting better.

If you’re feeling overwhelmed by debt, remember you’re not alone. Help is available and there is a way forward.

Gambling – There is a way forward

Read the video transcription

Hello, I’m Fiona Guthrie, the CEO of Way

Forward. Gambling affects millions of

Australians. If you’re one of them, I

explain how we may be able to help in a

moment. But first, it is worth reminding

ourselves about the size of the problem.

Australians lose $ 31 billion per year

gambling. We have the highest per person

losses in the world. Now, to put this in

context, the average gambling loss per

household is $3,045

per year. Now, that’s more than the

average household spends on utilities

like electricity, gas, and water. Poker

machines are a major driver of harm.

Online gambling with 24/7 racing and

sports betting is also harming the

financial futures of so many families,

particularly men. And we see it in

Wayford’s data. We hear the worry in the

voices of our clients at Way Forward.

Some of the people we work with have had

their finances affected by gambling, but

they want to get back on track. People

like you. To be able to help you and to

work constructively with creditors, we

need to see that your gambling has

stopped and that a sustainable repayment

plan is possible. We want to support you

and not set you up to fail. So before we

start, we’ll ask you to provide us with

some data, things like bank statements

and digital wallets. We’ll ask to see

some proof that you stop gambling,

including registering for Betstop, the

national online gambling exclusion

mechanisms, as well as using your bank’s

gambling blocks. Software gambling

blocks on your vice on your devices can

also help. So if gambling is affecting

your life, you can change this. Imagine

being in a good place and remember there

is a way forward.

Debt Collection – What are your rights?

Read the video transcription

If you’ve missed a payment on a loan or a bill, you might be contacted by a debt collector.

And that could feel really stressful.

But you still have rights and there are steps you can take to get back in control.

So first up, let’s talk about what debt collectors can and can’t do.

What they can do includes writing to you, ringing you, or texting you about the debt.

They allowed to contact you.

But there are limits on when you can be contacted and how often.

Contact must be no more than three times a week or 10 times a month, and only between 7:30 AM and 9:00 PM on weekdays or 9:00 AM and 9:00 PM on weekends.

And a debt collector cannot contact you on a public holiday.

So what can a debt collector not do?

What are they prohibited from doing?

They can’t pretend to be from a court or a government agency or a law firm if they’re not.

They can’t tell your family, friends, or employer about your debt.

They can’t contact you at work If you’ve asked them not to do that.

They can’t pressure you to pay in full or to make large payments you can’t afford.

They can’t pressure you to use your super, borrow more money or sell assets to pay the debt.

And they can’t visit you at home or work unless it is absolutely necessary, and you can ask them to leave immediately if that happens.

And importantly, a debt collector cannot bully or harass you or try to embarrass you in front of others. So what are your rights?

If you don’t recognise the debt, the debt collector needs to provide you with the proof and they have to stop any debt collection activity until they do.

And you have the right to discuss a payment arrangement that you can afford.

And really importantly, if you can’t agree with the debt collector about an affordable arrangement, or have been harassed, you may be able to lodge a dispute with a free dispute resolution service.

If it is a credit debt, talk to AFCA the Australian Financial Complaints Authority.

If it is a telco debt, talk to the TIO, the Telecommunications Industry Ombudsman.

If it is a utility debt, you’ll need to google the Energy and Water Ombudsman for your state or territory.

And remember, you have rights and there is a way forward.

Can I access my super early?

Read the video transcription

Hello, I’m Fiona Guthrie, the CEO of Way Forward.

Today we’re talking about early access to superannuation.

Now, super is meant for retirement, so there are strict rules about when it can be accessed early.

But there are a few situations where you can take it out early, and I’m going to focus on just two.

The first is because you’re experiencing severe financial hardship.

The second is on compassionate grounds.

So let’s start with severe financial hardship.

You may be able to access some of your super if you’re struggling to pay for essentials, things like rent, food, or bills.

To qualify, you need to have been receiving Centrelink benefits for a continuous period.

The amount you can withdraw depends on your age.

If you’re under what the ATO calls your preservation age, which will be between 55 and 60, depending on when you were born and have been on the Centrelink benefits for at least 26 weeks in a row, you can withdraw between $1000 and $10,000, but only once in any 12 month period.

And you’ll have to pay tax on what you withdraw, and that’ll be somewhere between 17% and 22%.

However, if you’ve reached your preservation age, remember that’s somewhere between 55 and 60, depending on when you were born and have been on Centrelink benefits for at least 39 weeks in a row and you’re not working.

There’s no limit on what you can withdraw.

If you’re over 60, you will generally won’t be taxed to access your super early on the grounds of severe financial hardship. You need to apply to your super fund, not the ATO, and it’s important to know that not every super fund will allow you to do this.

So you’ll need to check with them and if your fund does allow it, they will ask for evidence such as a letter from Centrelink.

The second situation I wanted to talk about is withdrawing your super on compassionate grounds.

Compassionate grounds covers preventing foreclosure or for sale of your home.

It also covers a number of medical or disability related expenses such as treatment costs, home or vehicle modifications because of a disability, palliative care or funeral costs for a dependent.

Access to super on compassionate grounds is handled by the ATO and again, you need to provide them with evidence.

For example, if you were trying to prevent your home from being sold by your mortgage lender, you need to provide a letter from the lender with the information about the level of arrears as well as a few other things that they need.

Now, the super you withdraw will be taxed at the relevant lump sum rate and that rate will depend on your age and other factors.

So just a few things to finish up.

At Way Forward, people often ask us about accessing their super to pay down debt.

Now, usually there are better ways to manage debt like the affordable long term repayment plans we put in place.

If you want to explore accessing your super early, we strongly recommend talking to a free financial councillor on the National Debt Helpline on 1800 007 007 so they can talk through the pros and cons.

This has been a high level and general summary.

You can see lots of this stuff has got some complexities, so there’s more information on the ATO website.

And remember, there is a way forward.

When should I ask for help with my debt?

Read the video transcription

When should you ask for help with your debts?

Hi I’m Fiona Guthrie the CEO of Way Forward.

We help people experiencing long term financial hardship.

In our experience, people often wait too long because they don’t know what to do.

So I’m going to run through some of the signs to look out for.

Have a think as I go through this list: is this you?

Are you only making minimum payments on your credit card?

Are you avoiding opening bills or looking at your bank account because it’s too stressful?

Are debt collector’s calling you?

Is debt making it hard to sleep and enjoy life?

Are you thinking of taking on more debt to pay existing debt?

Because that’s only going to make it worse in our experience.

So if any of those tick a box, Way Forward might be the right service for you.

If you have some money left over after paying essential living expenses, we may be able to help.

If we’re not the right service, we’ try and guide you to an organisation that can help.

There’s more information about us on our website, wayforward.org.au

And there is a way forward.

Can’t pay your debts? Heres what to say.

Read the video transcription

Hello, I’m Fiona Guthrie, the CEO of Way Forward.

In this video, we’re unpacking what to say to a creditor if you’re experiencing financial hardship, or in other words, if you can’t make your payments or pay your debts on time.

Now, first up, remember, you’re not alone.

Financial hardship happens to thousands of people every day, and creditors have a legal obligation to consider your financial hardship and decide how to respond.

So start by telling them.

You could say I’m ringing because I’m experiencing financial hardship and I’d like some help to get through this.

Next, you’ll need to explain what’s happened.

You might have lost a job, got sick, had unexpected expenses.

You’ll also need to explain whether the problem will be temporary or ongoing.

If you can afford to pay something, it’s a good idea to do that, even if it is a really small amount.

And if you need more than a few weeks to pay, you might also be asked to provide some evidence, such as the medical certificate or pay slips or information about your budget.

So what happens if your creditor won’t agree to, say, reduced payments or no payments for a time?

Well, you have rights.

You can lodge a dispute with a free external dispute resolution scheme.

For lending, this is AFCA, the Australian Financial Complaints Authority.

For telcos it is the TIO, the Telecommunications Industry Ombudsman, and for utilities, search for the Energy and Water ombudsman in your state or territory.

It is usually a good idea to keep notes of who you spoke to and what was said when you’re talking about financial hardship.

And remember, this may be easier than you think, and the earlier you contact your creditors, the better.

And finally, remember there is a way forward.

Secured and unsecured debt – what is the difference?

Read the video transcription

Hello, I’m Fiona Guthrie, the CEO of Way Forward.

Today I’m unpacking the difference between a secured and an unsecured debt.

In a nutshell, a secured debt is one that is backed up by an asset, such as a house or a car.

If you can’t pay your debt for any reason, the creditor has the right to sell the asset to put toward the debt.

The most common examples of secured debts are home mortgages and car loans.

Another example might be household goods under a rent to buy contract.

So a secured debt is backed up by an asset.

An unsecured debt isn’t backed up by an asset.

Common examples of unsecured debts are credit cards, buy now, pay later accounts, wage, advanced products, payday loans.

Other unsecured debts are gas, electricity and phone or Internet bills, unpaid rent and medical, legal and accounting fees. So that’s the difference. Secured debts, the creditor can sell the asset to put toward the debt.

An unsecured debt, the creditor will need to take different enforcement action and that’s a topic for another time. At Way Forward, we negotiate payment arrangements for unsecured debts.

What we do with secured debts is include those payments in a person’s budget. If you’d like to find out more, ring us or fill in the form on our website.

Because there is a way forward.

Bankruptcy explainer

Read the video transcription

In this 2 minutes, we’re talking about bankruptcy.

First up, let’s be really clear about this.

Bankruptcy is definitely an option that can work for people.

It’s a legal process you can access.

If you’re insolvent, that just means that you can’t pay your debts when they’re due.

Bankruptcy releases you from having to pay some of your debts, such as credit cards, payday loans, unpaid rent.

That’s why bankruptcy is often referred to as a fresh start.

But there are a few things to know.

First up, it doesn’t cover all debts such as court penalties, fines, child support, HECS and HELP debts.

And there are others and your debts are backed up.

And if your debts are backed up by an asset, such as a house or a car, it gets a bit more complex.

Creditors have the right to sell those assets if you can’t pay, but it may be possible to keep them.

It will depend on their value and how much you owe.

Bankruptcy usually lasts for three years and one day, and it will stay in your credit report for five years, so your access to credit will be affected.

So in summary, it can definitely be worth exploring whether bankruptcy make sense for you. But please, please get advice about that.

Ring the National Debt Helpline and talk to a free, confidential financial counsellor on 1800 007 007 or access their chat on ndh.org.au

And remember, there is a way forward.

Debt consolidation in 2 minutes

Read the video transcription

Hello, I’m Fiona Guthrie, the CEO of Way Forward.

In this video, I’ll unpack debt consolidation, what is it and how it differs from what we do at Way Forward.

So what is it?

Debt consolidation means rolling all of your debts into one new loan.

It can be a good option for some people.

One loan, one payment, less stress.

But on the downside, it might cost more if the loan takes longer to repay, which they generally do.

And if you secure the loan against your home, you risk losing your home if you can’t keep up with the payments.

There might also be fees and charges.

So how does this differ from what we do at Way Forward?

Way Forward is not a new loan.

We are not a lender.

Instead, what we do is negotiate with each of your creditors to come up with an affordable payment plan.

All of the loans stay in place, but you make one payment to Way Forward that we distribute to each of your creditors.

And we’re a completely free service.

So. in summary, debt consolidation can be an option in the right situation, but for people in long term financial hardship, Way Forward may also be worth exploring.

Visit our website or ring us to find out more.

Because there is a Way Forward.

What does Way Forward Do?

Read the video transcription

What does Way Forward do?

Hi, I’m Fiona Guthrie the CEO of Way Forward.

We are a not for profit charity that helps people experiencing long term financial hardship.

We put in place affordable debt management plans.

We are a free service and we’re funded by donations.

There are three simple steps.

First, we work out what you can afford.

Second, we negotiate with your creditors.

And third, you make one regular payment to us, and we’ll distribute that payment to your creditors.

If we’re not the right fit, we’ll do our best to guide you to a service that can help.

For more information, go to our website, wayforward.org.au.

And there is a way forward.

Buy Now Pay Later – How does it work?

Read the video transcription

Hello, I’m Fiona Guthrie, CEO of Way Forward.

Buy now, pay later is everywhere. It started as a way to buy clothing and shoes, but today you can use it for almost anything—electronics, travel, groceries, health care, and even some household bills. If you can use a credit card, chances are you can use buy now, pay later.

And it is credit. You’re using someone else’s money to buy something today and paying it off over time. Typically, you pay a portion upfront and the rest in installments. For example, if you buy a laptop for $1,000, a common arrangement might be paying $250 today, then $250 every fortnight until the balance is cleared.

What makes buy now, pay later different from credit cards is that there’s no interest. Instead, these businesses make most of their money from the merchant—the store where you’re shopping. Merchants pay a fee, generally around 4 to 6 percent of the purchase price, because buy now, pay later helps increase sales. Depending on the provider, you may also be charged account-keeping fees, and there will almost always be late fees if you miss a payment.

It’s also important to know that from June 2025, buy now, pay later providers must use the credit reporting system. This means that when you apply for a new buy now, pay later account, the credit inquiry will appear on your credit report. Your credit report may also show your buy now, pay later credit limits—for example, if you have $2,000 with one provider and $3,000 with another. Some providers may also share additional information, such as repayment history.

This is a big shift. In the past, many buy now, pay later debts were invisible. Now, lenders will be able to see much more of your buy now, pay later usage when assessing future credit applications.

Like all credit products, buy now, pay later has pros and cons. On the plus side, you can take advantage of a sale and spread payments over time, which can help with budgeting when everything is going smoothly. However, it’s also very easy to overspend. If you have multiple buy now, pay later accounts, future deductions happening at different times can make managing your money much harder.

Finally, if you’re struggling to keep up with payments, you have rights. Buy now, pay later providers must consider requests for hardship and pause collection activity while doing so. If you can’t reach an agreement, you can lodge a dispute with the Australian Financial Complaints Authority. It’s free to do so.