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A second emergency loan usually doesn’t happen because you “need more money.” It happens because the first repayment lands before essentials, your account runs dry, and the fastest option looks like another loan. The way out is simple: stabilise cashflow, change the first repayment plan early, and use targeted help for the bill that triggered the shortfall.
Before you apply, assume one thing: if you’re short now, adding another repayment will probably make next week tighter, not easier. Your goal is to stop the spiral, not to keep it moving.
Use the next 7 to 14 days only.
Income you expect to receive this pay cycle, minus essentials you must pay this pay cycle, minus the first loan repayment due, equals the gap.
If the number is positive, you’re short-term stressed but potentially stable. If it’s negative, you’re unstable. A second loan won’t fix that because it adds another repayment on top of a gap that already exists.
A second loan can feel like relief because it delays pain. But it usually converts one problem into two repayments, two fees, and less control over your bank account.
Many emergency loans are structured so repayments come out on payday or shortly after. If that withdrawal leaves you without enough for rent, food, transport, or utilities, the next “solution” becomes another loan.
When repayment schedules are tight, missing one payment can trigger fees and extra contact. That pressure pushes people into fast decisions.
When you’re stressed, speed feels like safety. That’s exactly when the wrong product feels right.
Keep it practical. Ask for one short-term change that gives breathing room, such as reduced repayments for a set period, a brief pause followed by a step up plan, fee relief linked to hardship, or a term extension that spreads arrears across the remaining term. If the lender offers an option that still leaves you short for essentials, it’s not a solution.
Use the option that matches what caused the emergency. This is how you avoid turning a one-off bill into an ongoing debt cycle.
Don’t waste time trying to “juggle” both repayments. Treat it as a cashflow problem and fix it at the source.
Start by stopping new applications for a short period so you can see your real position. Then contact both lenders and request hardship or payment plan help that fits your actual budget. If you can’t get a workable plan quickly, get free help from a financial counsellor so you don’t end up trapped in constant top ups.
“Hi, I’m calling about my loan repayment due on [date]. My income has changed because [reason]. I can’t meet the current repayment without missing essentials. I’m asking for hardship help or a payment plan. I can pay $[amount] each [week/fortnight] for the next [timeframe], then review. What information do you need from me, and when will I get a decision?”
Subject: Hardship request and repayment plan
“My loan reference is [number]. My income has changed due to [reason], and I can’t meet the next repayment on [date] without hardship. I’m requesting a temporary repayment change. I can pay $[amount] each [week/fortnight] for [timeframe], then review. Please confirm what documents you need and the decision timeframe in writing.”
Keep it simple: income per pay cycle, essentials per pay cycle, existing debt repayments per pay cycle, and what is left. If what is left is negative, your plan needs a repayment reduction or pause, not a new loan.
If the lender refuses to help, stalls, or only offers an option you can’t afford, ask for internal dispute resolution in writing. If you still can’t reach a workable outcome, escalate to AFCA. If you feel overwhelmed or the numbers don’t add up, call the National Debt Helpline early and get a financial counsellor on your side.
It’s usually a warning sign, not a solution. If you need a second loan to cover the first, your budget doesn’t support the repayments. The better move is to change the repayment plan on the first loan and stabilise essentials.
Tell them the cause of the shortfall, what you can pay, and how long you need. Ask for hardship help or a payment plan and ask for the response in writing.
Often, yes. If you have a reasonable cause and you can show what you can afford, lenders can consider reduced repayments, short pauses, or step up plans. The key is asking early and giving enough information.
Start with payment plans and hardship support for the bill that triggered the emergency. If you’re eligible, a no interest loan can help for essential goods and services. A financial counsellor can also help you negotiate and avoid repeat borrowing.
Get support early if you’re already considering a second loan, if repayments would leave you short for essentials, or if the lender isn’t offering a workable plan. Escalate to AFCA if you can’t reach a fair, affordable outcome through the lender.
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Disclaimer
Loan Owl, a trading name for Simple Finance Group Pty Ltd (ABN 70 626 186 418) and holder of Australian Credit License 509422, operates as a lender and referral service. We do not endorse any specific credit contract. Upon receiving an offer or referral to a lending partner, they will evaluate your application, provide a suitable credit contract, and inform you of the outcome. Both we and our lending partners will disclose all fees, charges, and terms before any contract is entered into. We may receive a referral fee, the amount of which is not determinable. We advise seeking independent legal and financial counsel before engaging in any financial products. The rates and loan terms provided on this website are for indicative purposes only. Loan Owl, as a lender, may process applications within 60 minutes, and loan disbursement may occur immediately upon contract signing. However, the timing of fund disbursement depends on your banking institution's policies.
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