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Colin M.
Colin M.
Ballarat, VIC

Hi, I am 53 and recently divorced and under financial pressure owing $30k on credit cards. Current superannuation is around $220,000 and would like to ask if I can apply for financial hardship and use some of my super to pay off the cards?

4 years ago


Check with your superannuation fund to find out under what circumstances you can claim financial hardship to withdraw money.
As far as I am aware some industry super funds like REST don't give you an option to be able to withdraw under financial hardship as they don't have that provision in their deed.
Best would be to check with your Superfund directly.
Hope it helps.


Thanks for your help Anuraag

Hi Colin,

As above, you'll need to check with your super fund. Some have provisions to allow access under financial hardship, others don't.

Normally the requirements for meeting financial hardship are very strict - credit card debt on it's own is unlikely to satisfy the requirements but you should check with your super fund.

Best of luck.



Hi James, thanks for the help

Hi Colin,

You need to be on government income support payments for at least 26 weeks to meet the first condition of withdrawing under severe financial hardship which doesn't sounds like the case.

The other option would be under compassionate grounds and there are a few things there but one could be needing to make a payment on a loan that would prevent you from losing your house.

Have a read https://www.ato.gov.au/Individuals/Super/Accessing-your-super/Early-access-to-your-super/

But, it could well be that you need to tighten the belt right up for a few months to get on top of things.




Glenn is right, from the research I've done over the last six months. Very difficult to use your super without being about to lose the house.

Your best bet will be to speak to your finance broker and look to consolidate debts (if that is a feasible option).

4 years ago

Chop your credit card up number one priority if you have a job it’s fine you may be able to get a personal loan but don’t ask for redraw option with personal loan. The interest rate might be lower cause of the amount you would need to borrow. I would suggest to pay it off monthly then you can make extra payment along the way and you might be able to budget your money better rather than dipping into your super. But if you don’t have a job it will be difficult. Check a financial planner if you need advice. If you are able to get loan pay it off immediately wait till it arrives in account and ring the credit card people up to cancel card.. Old saying if you can’t afford it!!!!!!!!!!!

Hi Colin,
sorry to hear things are tight. How's your credit file?
If you want to check, pop on over to www.FreeCreditRating.com.au We have set this site up to allow you to find the free credit file order forms with all 4 Australian (and one NZ) Credit Reporting Bodies.
Yes, you could have FOUR Credit Ratings!

Let me know if you need a hand at any stage.


Hi Colin

I am a consumer lawyer specialising in helping people in your position. There are very strict criteria to be met before you will be allowed to access your Superannuation. You do have option though such as entering into payment arrangements and even may be able to reduce the amount you owe as a settlement to the creditors.

Please give me a call on 07 3106 3016 and we can have a chat.

Irana Gray

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