After a meeting last Tuesday, Reserve Bank Governor Philip Lowe told a business dinner in Brisbane: "Our judgment has been that it is not in the public interest to encourage an already highly indebted household sector to borrow even more. More borrowing might have helped today, but it could come at a future cost." That's a clear signal that there are no more rate cuts.

Former treasurer Peter Costello put it succinctly on ABC radio recently when he pointed out that rates had been slashed to protect Australia from the global financial crisis and to encourage people to spend. In Costello's words, "and spend they did - all on housing".

He reminded us that the GFC is now over and rates will eventually "return to normal". He finished on a sombre note: "the longer the rate rises are delayed, the greater will be the pain when they eventually rise, as they must".

It's a wake-up call to anybody with a home loan, and especially to anybody having problems making their payments now.

If you are suffering mortgage stress, start with that great ASIC website MoneySmart.gov.au, which is one of the best I have seen. It is comprehensive, simple to use, and includes calculators for budget planning and mortgage repayments.

The essence of their advice is to get help as quickly as possible. Unfortunately, it is human nature to ignore a growing problem in the hope that it will get better. But if the problem is spending above your income, it can only get worse as time goes by unless you change your money habits.

When you can't live on your income, you make up the deficit by borrowing money on credit cards or on personal loans. However, these create extra monthly repayments, which put ever-increasing strain on a household that couldn't pay its bills in the first place.

Yes, mortgage stress is a scary experience, but it is not half as frightening or expensive as being forced to sell your home, rent elsewhere and then try to re-buy when your finances improve, often at a time when the housing market has bounced back. This exercise could cost you more than $100,000.

If you are in financial stress, the first job is to get a picture of where you are now. You can do this using the budget planner on the ASIC website, or by writing down all your assets and liabilities and also your income and expenditure.

If you are spending more than you earn, the only options are to earn more or spend less. You could earn more by looking for a second job, or taking in a boarder to help with rates and electricity. If you do this, make sure the money they give you is treated as a contribution to household expenses and not rent - otherwise you could find yourself losing part of your capital gains tax exemption for carrying on a business in part of your residence.

There have been volumes written on ways to cut costs, but don't be afraid to ask for help. If you are having trouble managing school fees, talk to the principal - many schools have schemes to assist families in these circumstances. If things get really tough, don't be too proud to ask for emergency food and clothing from organisations like Lifeline. They have counselling services that can help ease the emotional strain as well.

If credit card debts and personal loans are the problem, think about consolidating then with the home loan. But beware: this will only work if you stay away from consumer debt in future and raise the repayments on the increased home loan balance so the overall term is shortened not lengthened.

Let me finish by repeating how important it is to seek help early and keep in touch with your creditors. Most lenders are prepared to extend payments or come to arrangements, but if you try to ignore the situation and don't communicate, there will be no mercy. Remember, at some stage, rates will start going up again. When they do, life will be even tougher for those who can't balance their budget now.

Noel Whittaker is the author of Making Money Made Simple and numerous other books on personal finance. His advice is general in nature and readers should seek their own professional advice before making any financial decisions. Email: noel@noelwhittaker.com.au