If you’ve missed a credit card payment or two, you’re not alone—delinquent accounts are on the rise in Australia as cost-of-living pressures persist into 2025. But what exactly happens when your credit card becomes delinquent, and what do the latest rules mean for your financial future? Let’s unpack the risks, the new regulatory landscape, and practical steps to get back in control.
What Is a Delinquent Account, and Why Does It Matter?
A delinquent credit card account is one where the minimum monthly payment hasn’t been made by the due date. In Australia, your account typically becomes ‘delinquent’ after 30 days of missed payments, but the real trouble starts the longer you delay. By 60 or 90 days past due, your bank may start collection procedures, freeze your account, and report the delinquency to credit reporting agencies.
- Immediate impact: Late fees, increased interest rates, and the risk of losing access to your card.
- Credit score hit: Even a single missed payment can shave points off your credit score, making future borrowing harder and more expensive.
- Collection action: Persistent delinquency can lead to default listings, debt collection calls, and even legal action.
For context, recent ASIC data shows a 7% rise in reported delinquent credit card accounts in the past year, highlighting growing household financial strain.
2025 Policy Updates: What’s Changed for Cardholders?
This year, several changes have come into effect to address rising consumer debt and improve transparency for borrowers:
- Stricter hardship protocols: As of March 2025, lenders must proactively offer hardship assistance to customers who miss two consecutive payments. This can include payment plans, interest freezes, or temporary reductions in minimum repayments.
- Enhanced reporting rules: Credit reporting agencies now update delinquency statuses in near real-time, making it crucial to act quickly if you miss a payment.
- Mandatory notification: Banks must send SMS and email reminders about overdue accounts before reporting delinquencies to credit bureaus, giving consumers a last-minute opportunity to avoid a credit file mark.
These updates aim to protect consumers but also mean you can’t afford to ignore overdue notices or hope the problem will go away.
How to Recover From a Delinquent Account
Falling behind doesn’t have to spell financial ruin. Here’s how to get back on track if your credit card account is delinquent:
- Contact your bank immediately. Many lenders now have dedicated hardship teams and are required to discuss options if you’re struggling to pay.
- Ask about payment arrangements. You might be eligible for reduced payments, a repayment plan, or even a temporary pause on interest.
- Check your credit report. Use the free annual check to see if your delinquency has been listed and dispute any errors promptly.
- Consider consolidating debt. If you have multiple overdue cards, a debt consolidation loan or balance transfer (with a lower interest rate) could help you regain control.
- Budget and prioritise. Focus on essential expenses and channel any extra funds toward catching up on your card payments.
Real-world example: Sydney resident Fiona missed two months of repayments after unexpected medical bills. After contacting her bank, she secured a six-month hardship arrangement with reduced payments. By sticking to the plan and avoiding further missed payments, her account was brought back into good standing—though her credit score took a temporary hit.
Protecting Your Financial Future
A delinquent credit card account can feel overwhelming, but with proactive steps and awareness of 2025’s updated protections, it’s possible to recover and rebuild your credit standing. Ignoring overdue payments is the worst option—reach out early, know your rights, and take advantage of new hardship support from your bank.
