What to Do When Things Go Wrong Financially

*/ ?>
hero-featured Contingencies
dateicon 20th May 2025
timeicon 6 min

What to Do When Things Go Wrong Financially

Quick Look
Focus – Practical steps to take when facing job loss, illness, or unexpected financial shocks

Key Takeaways:

  • Focus on stabilising cash flow first—then work through options with support
  • Government, super and hardship programs may help, but come with conditions
  • Panic makes things worse—small, proactive steps protect your long-term finances
  • Reading Time: ≈ 6 minutes
introimage

Introduction
Life doesn’t always go to plan. Job loss, serious illness, family breakdowns, or market crashes can hit fast—and leave you feeling helpless.

But you’re not alone. And with the right steps, it’s possible to regain control, reduce stress, and protect your long-term goals.

This guide walks you through the practical things you can do when your finances take a hit—and how to avoid making things worse in the panic.

Context & Problem

Whether it’s a job that ends suddenly, an injury that stops you from working, or investments that drop overnight, money stress can feel overwhelming.

The mistake many people make? Trying to fix everything at once—or ignoring the problem entirely.

Instead, the goal is to focus on cash flow, access support early, and take small steps to protect your essentials. against consistent success

Strategy & How To

1. Stabilise the Basics First

Ask yourself:

  • How much cash do I have right now?
  • What are the absolute essentials I need to cover (e.g. rent, food, utilities)?
  • Can I defer or pause anything non
  • Start with a simple priority list of expenses and income

2. Talk to Providers Before You Fall Behind

If you’re struggling with :

  • Mortgage or rent: Contact your bank or landlord early. Banks may offer repayment pauses or interest-only terms
  • Energy, internet or phone bills: Most providers have hardship programs—often including payment plans or temporary bill relief.
  • Credit cards or personal loans: The worst thing is to ignore them. Ask about lower interest rates, frozen payments, or hardship flags.

3. Check What Support You Can Access

Depending on your situation, you may qualify for:

Job Loss or Reduced Hours

  • Job Seeker Payment(Centrelink)—if you’re actively looking for work
  • Rental assistance—if you’re already on a payment
  • Local council support—food vouchers or emergency housing in some areas

Health Issues

  • Income protection insurance—check if you have cover inside super
  • Disability support pensions or sickness allowance
  • Compassionate access to super—for specific medical treatment or expenses (ATO-approved only

Market or Investment Losses

  • Stay calm. Selling at the bottom often locks in losses
  • Consider speaking to a financial adviser before reacting
  • Revisit your investment mix—but only when the dust settles

4. Adjust Spending Without Shame

Use a bare-bones budget

  • Essentials only (housing, food, utilities, medication)
  • Pause subscriptions, shopping, and extras where possible
  • Use cash or debit-only if that helps avoid over spending

This isn’t forever—just a reset while you stabilise.

5. Access Help Without Judgement

You don’t need to go it alone:

  • National Debt Helpline(1800 007 007)—free financial counselling
  • Lifeline(13 11 14)—emotional support
  • Use cash or debit-only if that helps avoid over spending

Common Questions & Misconceptions

Should I access my super?

Only as a last resort. Early access may be available for medical costs or severe hardship, but it can harm your retirement savings long-term.

Will Centrelink take too long?

Is it worth speaking to the bank?

What if I ’ m too embarrassed to tell anyone?

Conclusion
Financial setbacks are tough—but temporary. The key is to pause, prioritise, and reach out for help early

Small, steady actions now can make a big difference to how quickly you recover. And the experience, while hard, can actually build confidence for the future.

Looking for financial guidance, at your pace?

We’ve partnered with Money GPS to offer access to low-cost, personalised financial advice—completely online and easy to explore.

  • Free to get started
  • Advice topics never more than $220
  • Ongoing support from qualified Money Coaches

You stay in control. We simply connect you to quality advice when you’re ready.

Need Full Scope Financial Planning?
If you think you might need a holistic roadmap that leaves nothing out, consider booking a discovery meeting with a fully licensed Financial Planner.

  • Work one on one with the Planner
  • Get ongoing support through every stage of your financial journey Book a discovery call with Planning IQ today and take the first confident step towards comprehensive wealth management.

Disclosure: General information only. Consider your objectives, financial situation and needs, and seek professional advice before acting.

1. Fact References

2. Unverified or Inconclusive Items

3. Time Sensitivity

4. Bias Assessment

Review Image

Review & Fact Check

Fact References

  • Centrelink Job Seeker eligibility–Services Australia (servicesaustralia.gov.au)
  • Superannuation early access–ATO: Early release of super
  • National Debt Helpline–ndh.org.au
  • Insurance through super–ASIC Money smart: Income protection

Need help making smarter financial decisions? Try our AI-powered financial check-up today!

Start Your Free Check-Up

If your situation is more complex and you're seeking personalised support, our AFSL-licensed partners at PlanningIQ offer a one-hour discovery meeting with a real financial adviser. You can discuss your situation with the Adviser to gain an insight on the options available to you and will receive a written summary of the strategies discussed. You can then decide whether you’d like to proceed with further advice.

Click here to book a discovery meeting