Generally, debts can be put into two categories.

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First, there are private debts (e.g. from a bank, a landlord, a car dealer, or ‘Afterpay’).

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Second, there are debts owed to the State (e.g. unpaid fines).

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When it comes to private debts, it’s important to know who you need to pay, and how much you owe.

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You can ask for an account of your debts by contacting agencies such as ‘Equifax’ (PO Box 964, North Sydney NSW 2059).

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In Queensland, debts are unable to be recovered after 6 years.

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Importantly, the National Credit Code (NCC) is a useful tool.

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Under the NCC, lenders can be charged if they do not do certain things once a borrower says they are in financial hardship.

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If you tell a lender that you are in financial hardship, the lender must:

• respond to you,
• investigate your situation, and
• make a reasoned decision on whether to change the terms of your loan to accommodate the hardship.

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If the lender doesn’t respond, or is unfair, you can complain to the Australian Finance Complaints Authority (AFCA) at (Australian Financial Complaints Authority Limited, GPO Box 3, Melbourne, VIC 3001).

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Or, you can go to the Federal Court and ask a judge to change the terms of the loan.

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The National Credit Code applies everywhere in Australia and can be found in Schedule 1 of the National Consumer Credit Protection Act.

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Debts from unpaid fines are different.

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In some jurisdictions including Queensland, you can you apply for work or alternative activities to count as payment of a fine debt under a Work Development Order (WDO).

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You can also apply for a fine to be waived.

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Each state will take into account different circumstances when deciding whether to waive your fine.

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While it is important to look at the law that applies where you live, fines might be waived because of:

• Domestic and family violence;
• Special circumstances and unusual hardship;
• Medical reasons; and
• When you have no reasonable prospect of repayment.

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To get a fine waived, you will need to write to the issuing agency and explain the reasons why you can’t pay.

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Financial Counsellors can help you with debts. Ask if your prison offers financial counselling.