What Is Financial Hardship?
Financial hardship is when someone genuinely wants to pay but is temporarily or longer-term unable to meet their obligations as they fall due.
In this answer
- Define financial hardship in plain English
- Give common, everyday examples
- Explain why naming hardship early helps
- Reassure customers they will be treated fairly
- Signpost free, independent help
5 min
What hardship means
Financial hardship describes a situation where a person wants to pay what they owe but cannot currently do so as payments fall due. It is about capacity, not willingness — the intention to pay is there, but the means are temporarily, or for a longer period, stretched.
Hardship is common and nothing to be ashamed of. Recognising it openly is the first step to finding a workable way forward.
Common causes
Hardship can arise from many ordinary life events, such as:
- illness, injury, or a caring responsibility;
- loss of a job or a drop in income;
- relationship breakdown or family changes;
- an unexpected major expense.
Often it is temporary. With a little flexibility, many customers get back on track without the debt spiralling.
Why speaking up helps
Telling a creditor or recovery firm about hardship early usually leads to better options — such as a pause, a reduced payment, or more time. Silence, by contrast, tends to make things harder.
Merion would always rather know. If a customer is struggling, we can adjust our approach and focus on a realistic, affordable outcome rather than pressure.
Where to get help
Free, independent and confidential financial counselling is available through the National Debt Helpline on 1800 007 007. Counsellors can help you understand your situation, your options, and your rights.
You can also tell us directly through our contact page, and read more in our guide to how hardship is handled.
This page is general information only and is not legal advice.
Key takeaways
- Hardship is about capacity to pay, not willingness
- It often stems from ordinary life events and is frequently temporary
- Speaking up early usually leads to better, more affordable options
- Merion would rather know so it can adjust its approach
- Free, confidential help is available on 1800 007 007
Frequently asked questions
Is financial hardship the same as refusing to pay?
No. Hardship means you want to pay but cannot currently afford to. It is about capacity, and it is treated very differently from refusal.
Will telling Merion about hardship make things worse?
No. It helps. Knowing your situation lets us adjust and work towards an affordable outcome rather than applying pressure.
Can I get independent advice?
Yes. Free, confidential financial counselling is available on 1800 007 007 through the National Debt Helpline.
Fair, professional, compliant — always
Merion handles every account on the facts, with respect, and within the rules. Questions? We're happy to help.