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Dan Phillips bought a unit in Hobart’s outskirts last year, just as rates started to climb.

“By the time I moved in, I’d had more letters about rate rises, than I’d had months living in the property, which was pretty confronting,” he says.

It has been a stressful time for many home owners, after nine consecutive interest rate rises.

The National Debt Helpline has seen a 28 per cent jump in calls for help in January, compared to the same time last year.

So, what are your options if you can’t afford to pay your mortgage?

Get on the front foot

While it’s tempting to ignore the situation, it’s better in the long run if you act early.

Obviously, a good first step is to contact your lender and ask for the lowest possible rate, or to consider refinancing with another lender.

Dan Phillips has also cut back all his expenses to afford his repayments.

“I’ve got a pretty tidy little spreadsheet with a bit of budgeting on there. I’m always looking for specials and that kind of thing, cutting coupons,” he explains.

If you’ve built up equity in your home, there are a couple of other options, says UTS Business School’s Professor Kathy Walsh.

“What you could do is push out your home loan term a little bit longer,” she suggests.

“You could also move to paying interest only. It means you’re not repaying anything on your home loan, which in the long term, it’s not particularly useful. But it means you can salvage yourself through this time.”

Taking either of these options will mean you ultimately pay more interest to the bank over the life of the loan, even if the repayments now are a little smaller. The difference can be hundreds of thousands of dollars in extra interest, depending on the loan amount and term, or the length of any interest-only period.

You have a legal right to ask for help

Remember, you have a legal right to ask for financial assistance if you’re having trouble paying your mortgage temporarily.

Just ring your lender and ask to speak to their financial hardship team. You may be able to arrange a deferral or reduction in repayments or to get your fees waived.

If you’re finding the process of negotiating with your lender all too stressful, it might be worth contacting a financial counsellor.

Financial counsellors are independent — and free — and can help you speak to your lenders, create a budget and sort out your debts.

“We can give you some advice about what your rights are, how to negotiate with the bank and what you can do moving forward,” financial counsellor Kirsty Robson says.

A last resort — accessing your super

One of the last options you could try is to access your retirement savings.

“Accessing your super early is very difficult,” Ms Robson explains.

“So, legal action would really have to have started for that to be possible. And then you’d have to go through the process of applying through the ATO.”

Finally, if you get really stuck, it’s better to sell your own house than let the bank repossess it.

“You’ll get a better price,” Ms Robson says.